KARACHI:
The State Bank of Pakistan (SBP) has directed commercial banks to adopt digital supply chain finance (DSCF) solutions to support small and medium enterprises (SMEs).
The central bank has instructed commercial banks to develop and implement these DSCF solutions within six months.
DSCF is a solution that helps businesses maximize their cash flow by extending the payment terms they give their suppliers, while giving their suppliers the ability to get paid sooner. As a result, both the buyer and the provider benefit.
This initiative aims to improve SMEs’ access to finance. In addition, it will enable effective use of technology to digitize retail payments.
In its directive, the SBP also emphasized on creating an efficient supply chain finance sector.
To facilitate this, banks can either develop their own DSCF solutions or partner with fintech companies or service providers.
According to SBP, implementing DSCF solutions will increase SMEs’ access to finance, improve their operational efficiency, reduce costs and strengthen risk management practices.
On May 24, industrialists and analysts urged the government to help boost the growth and development of SMEs, with a particular focus on the auto parts industry, with the aim of creating a stronger and more dynamic economic landscape.
They called for a complete ban on the import of used vehicles to boost the ailing local auto industry while presenting budget proposals for the financial year 2024-25.
Tomorrow, the federal budget, with an estimated total of around Rs 18,000 billion, is to be presented for the financial year 2024-25 in Parliament. The budget is expected to include a 10-15% pay rise for civil servants and a tax collection target of 12.9 trillion rupees.
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