Karachi: Leaders from the United Business Group (UBG) have expressed strong support for the government's new Rs 1.1 trillion financial support scheme aimed at bolstering Small and Medium Enterprises (SMEs). The initiative is seen as a critical move to stimulate economic recovery and expand employment opportunities across the nation.

According to United Business Group, the scheme, developed in collaboration with the State Bank of Pakistan (SBP), is designed to significantly increase SME financing up to Rs 1,100 billion over the next five years. It includes diverse financial support ranging from working capital loans to long-term financing options, with loan amounts up to Rs 25 million for small enterprises and Rs 200 million for medium-sized businesses.

The UBG leadership, including President Zubair Tufail, Chairman Khalid Tawab, and other key figures, highlighted that the scheme also features government-backed credit loss absorption for new exposures to SMEs. This includes 20% first loss coverage for small enterprises and 10% for medium enterprises. All commercial and Islamic banks are participating in this initiative, which is expected to lead to enhanced economic activity and significant job creation.

This proactive approach by the government and SBP addresses the challenges faced by the SME sector following economic contractions and lower growth rates in recent fiscal years. The UBG leaders commended the timely government action, noting that it would help alleviate economic slowdown and urged eligible SMEs to take advantage of the available financial supports.