KARACHI, April 24: The Habib Bank Limited has decided to extend finances to small and medium enterprises (SMEs) against commercial properties.

Accepting a demand made by the Union of Small and Medium Enterprises (Unisame), the HBL has opened up a special desk to handle such cases, who seek finances against commercial properties.

In a letter addressed to Unisame convener Zulfikar Thaver, HBL executive vice-president has also agreed to give demand and long-term finance to SMEs against their commercial properties.

Unisame had been asking the banking sector to move forward and extend loans to SMEs against their commercial properties. The Union had been arguing that by providing such facility SMEs would not only assist the small enterprises to spare their blocked capital in such properties but would also help create working capital for their growth and progress.

Presently, a very large number of SMEs are operating on the basis of self-financing and this inhibits their growth due to limits in individuals resources and availability of the capital.

It is estimated that once the banks allow finances against commercial properties a boom could be witnessed in the activities of SMEs.

The progress and development of SMEs will also help large scale manufacturing sector to have a strong base to lean upon which is the case in almost all developed and developing countries.