- The president of Unisame, Zulfikar Thaver, said this because of what the courts had said.
- the clear preferences of the different groups in society.
- Council members talked about the need for change.
KARACHI: In a statement released on Saturday, the Union of Small and Medium Enterprises (Unisame) asked State Bank of Pakistan (SBP) Governor Jameel Ahmed to consider the “Pay As You Earn Scheme” for Small and Medium Enterprises (SMEs) under asset-based Islamic financing, which is becoming more popular. This would reduce the equity margin to the lowest possible level and help SMEs.
Zulfikar Thaver, the president of Unisame, said that in light of the court rulings and the clear desire of different parts of society for Islamic financing, it is suggested that Islamic banks develop a product and help the sector install plants, machinery, equipment, and other things that are needed for projects and businesses under the “Pay As You Earn Scheme” of asset-based financing.
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Thaver said that since the financing would be secured by asset-based financing and the asset would be mortgaged with the lending bank, a tracker would be put on the asset to alert the lending bank if the plant, machinery, or equipment were moved without the bank’s permission.
In light of the shortage of foreign exchange, the members of the Unisame Council said that plants need to be updated to make them more productive and that the benchmark needs to be raised so that imported goods can be used instead.
They said that the plan with less money from entrepreneurs would be the best way to help the sector grow and improve.