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Exporters focus on developing SME culture in Sialkot
Jun '08
After Japan, Germany, Korea and Taiwan, Sialkot City of Pakistan has also started developing SME culture. This has been made amply clear from the fact that SMEs in the region have been focusing on producing only exportable goods, enjoying special preference in the international market for its products.

Leading exporters in Sialkot told the media, "We understand that to meet the demand for export financing in the SME sector, foreign financial institutions have modified their lending policies, which we would stress the banks in Pakistan to also replicate. In this regard, we would expect foreign banks to share their expertise and experience with the banks in Pakistan."

Exporters have unanimously voiced their demand asking banks to continue expansion of new innovative products and service offerings for which, partnerships, alliances and joint marketing program on part of the banks and government agencies are crucial to help the SMEs to grow at a rapid pace. However, it is obvious that good performance of an export business depends on recieving support of the banking sector.

Exporters also emphasized on the need to reduce the markup rate for the export sector in particular and to provide concession financing for SME sector in Sialkot. In fact they even went to the extent of suggesting that banks may offer funds to SMEs on cash flow base lending rather than security/collateral requirements. One way or the other, it would greatly help SMEs to deal with their financial problems in an effective way and would also enable them to successfully develop their business.

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