ISLAMABAD, Aug 11: The Ministry of Industries and Production will submit to the President its proposal for mandatory disbursement of funds by the banks and DFIs to the Small and Medium Enterprises (SMEs).

This was stated by the Industries Minister, Liaquat Ali Jatoi while speaking at the 7th meeting of the Board of Directors of the Small and Medium Enterprises Development Authority (SMEDA) here on Wednesday.

The country, he pointed out, was in dire need of a vibrant and active SME sector to create job opportunities for the jobless. The sector could not achieve this objective without easy access to financial assistance by the formal banking/financial institutions, he stressed.

Jatoi also advised SMEDA to plan a series of seminars on SME financing in all the provinces and to involve SMEs, bankers and respective Chief Ministers and Governors in its mission to expand the sector.

He considered this approach essential for prompt decisions in favour of the SMEs. The board members endorsed the minister's initiative of mandatory allocation of credit for SMEs, as in the case of agriculture sector.

Later, the board discussed SMEDA's new development plans and its budget for the financial year 2004-05. The Minister directed the SMEDA to prepare the new development plans for SMEs in close consultation with the Chambers and other industrial/trade associations.

He nominated members of the Board, M/s. Nauman Wazir, Shehzad Alam, Farhana Mauji and Kamaluddin, to lead this assignment in NWFP, Punjab, Sindh and Balochistan, respectively.

The board also stressed the need of introducing a strict monitoring system in order to enhance the efficiency and effectiveness of SMEDA. In this regard, it was decided to set up an Audit Committee and an Executive Committee.

Mr. Nauman Wazir would be the head of the Audit Committee with Ms. Farhana Mauji and the Joint Secretary, Ministry of Industries & Production as members. The Executive Committee will be headed by Mr Shehzad Ali with Mr Shahab Khawaja, Chief Executive Officer of SMEDA and Mr Kamaluddin as members.