ISLAMABAD: The government is considering various options including merger of SME Bank with the National Bank of Pakistan (NBP).

The proposals were discussed at a meeting chaired by Finance Minister Ishaq Dar and attended by senior officials from SME Bank, SBP and NBP on Saturday.

SME Bank President Ihsan ul Haq Khan gave a presentation on the current position of the bank and on its future prospects under different proposed arrangements including its merger with the NBP.

The minister was informed that the audited accounts revealed that the bank was in no position to sustain itself in the face of Rs5.2 billion liabilities as of December 31, 2014.

The finance minister observed that SME Bank would have been a great national asset and proven to be an effective source for development of small and medium enterprises if it had been professionally managed.

He directed the SBP to come up with concrete proposals in a week’s time on how to turn the bank into a truly vibrant finance institution.

Published in Dawn, March 29th, 2015

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