LAHORE, Sept 28: The National Small and Medium Enterprises Development Task Force Working Committee on Finance will submit its final draft proposal on SME financing by the end of October.

This was disclosed at a meeting of the Working Committee held at the SMEDA head office here for finalising proposals on SME financing through formal sources available in the country.

Pakistan Banks Association Chairman and Union Bank President Shaukat Tareen presided over the meeting attended by SMEDA Business Development Services General Manager Sultan Tiwana, Policy Planning and Advocacy General Manager Nabeel A. Goher and Special Projects Director Anjum Ahmed.

Presentations made by the Sub-Committees on National Analysis, International Best Practices, Regulatory Framework and Definition of SME revealed that the SMEs were placed in a difficult situation in the country on account of management, finance, policy, marketing and finance risks. Legislation was required for creation of an exclusive financing source for the SMEs for solving the problem on the pattern of China and Japan.

SMEDA Policy Planning Manager Sajjad Moghal said that a new regulatory framework was necessary for creating an SME-friendly environment in the country. The government should not only frame separate taxation rules for the SMEs but also enforce long term industrial and investment policies.