KARACHI, Dec 27: The Equity Participation Fund (EPF) has been urged to include city of Karachi on its funding scheme and should also enhance the limit which is presently restricted up to Rs6 million only.

The Industrial Development Bank of Pakistan (IDBP) is the fund manager of EPF which provides equity support in the form of direct purchase of shares.

In a meeting between the representative of small and medium enterprises here on Saturday, issues related to funding of SMEs were discussed at length.

Speaking on the occasion vice president EPF Akbar Khan Jakhrani said that the EPF was established under an Ordinance to foster and accelerate the growth of small and medium enterprises in the less developed areas of the country.

Giving other details, he said that the EPF also have the right to appoint one of its nominee as a director on the board of the company. A minimum guaranteed dividend of 8 per cent per annum is to be paid by the limit from the second year and the sponsors will buy back the shares of EPF in the capital of the company on completion of four years from the date of last disbursement of equity support at the face value of the share.

The convener of Unisame Zulfikar Thaver acknowledged the fact that EPF is effective support and promised the officials of EPF to spread the message to SMEs all over the country to avail the opportunity provided by the EPF.

He said that the limit of six million rupees should be enhanced and secondly the restriction on non-eligibility of Karachi should be removed.

In support of his demand, he said that there are several backward and under developed areas in the city such as Hawksbay and Trans Lyari area which are suitable for SMEs and several SME units are being set up in Hawksbay and SMEs can avail the facilities offered by the EPF.

The executive director of the EPF Jamal Naseem speaking on the occasion said that the Fund was in a position to finance SMEs all over the country in a big way and if required can obtain further credit line from various sources who are ready to fund EPF.

He said that the EPF this year declared a 10 per cent dividend to its shareholders which reflects its progress and financial strength