ISTANBUL: Micro, small, and medium-sized enterprises across member states of the Organisation of Islamic Cooperation (OIC) face significant barriers in accessing affordable trade finance, Federal Minister for Commerce Jam Kamal Khan said at the closing session of the 42nd ministerial meeting of the Standing Committee for Economic and Commercial Cooperation (COMCEC) in Istanbul. He highlighted regulatory fragmentation, high collateral demands, and lengthy administrative procedures as key obstacles and proposed five priority areas for improvement.
According to Union of Small and Medium Enterprises, Minister Khan suggested the harmonization of national legal, regulatory, and supervisory frameworks to enhance cross-border transactions and access to financing. He emphasized the need for diversified trade financing instruments, export credit guarantees, and financial arrangements tailored to exporters, especially for MSMEs and technology-driven firms. Furthermore, the minister advocated for the promotion of Shariah-compliant trade financing, urging the development of institutional capacity, risk-sharing arrangements, and closer cooperation among Islamic financial institutions.
The minister also called for accelerated digital transformation in trade and finance, including the integration of customs and banking systems, electronic trade documentation, and single-window platforms to reduce transaction costs and simplify cross-border trade. Additionally, he underscored the importance of targeted financing facilities, credit guarantees, financial literacy programs, and market linkages for MSMEs, particularly those led by women and youth.
The session focused on developing effective trade financing tools to boost exports within OIC member countries. Minister Khan stressed that affordable, diversified, and sustainable financing is crucial for export competitiveness and growth, identifying intra-OIC trade, transport connectivity, sustainable tourism, agricultural productivity, food security, poverty alleviation, and digital transformation as priority areas for collective action.
Addressing agricultural challenges, he advocated for cooperation in research, technology transfer, and investment in sustainable value chains. He highlighted the private sector's role in investment, innovation, industrial development, and employment, encouraging greater interaction among business communities to unlock trade and joint ventures.
Minister Khan urged COMCEC to assist member states in converting recommendations into measurable outcomes through project support mechanisms, analytical work, and institutional cooperation. He emphasized that the session's success would depend on implementation rather than the adoption of recommendations alone and called on members to pursue practical initiatives that deliver economic benefits. Vice-President of the Republic of Türkiye Cevdet Yilmaz chaired the session, and Minister Khan acknowledged the efforts of the COMCEC Coordination Office and OIC institutions in organizing it. He expressed hope for continued progress in the 43rd session.