The government has outlined a strategy to offer accessible credit facilities to small and medium-sized enterprises (SMEs), recognizing their crucial role in the economy and job creation. This initiative was discussed in a recent cabinet meeting, which also addressed the resignation of Tahir Hassan Qureshi, President and CEO of SME Bank Limited, and the subsequent appointment of his successor.
During the meeting, there was an extensive discussion on the importance of SMEs in driving Pakistan’s economic growth by providing them with affordable credit options. Cabinet members also examined the necessity for a financing structure tailored to SMEs, modeled after those in other developing nations.
Under the directive of the Prime Minister, the Finance Division collaborated with various banks to formulate a scheme, overseen by the State Bank of Pakistan (SBP), aimed at providing these credit facilities.
Recalling a previous decision made by the federal cabinet in March 2023 to wind down SME Bank, it was noted that Tahir Hassan Qureshi was appointed as its President and CEO by the federal government upon SBP’s recommendation. His tenure ended in November 2023.
Following Qureshi’s resignation due to personal reasons in January 2024, the SBP proposed Qasim Nawaz, a former executive director, as his replacement to manage the bank’s winding-down process and potentially serve as the official liquidator.
The federal government, in consultation with the SBP, has the authority to appoint the President of SME Bank under the Banks (Nationalisation) Act, 1974, for a three-year term. Given the bank’s winding-down status, an interim appointment for three months or until completion of the process was suggested.
Furthermore, discussions were held regarding a compensation package for regular and contractual employees, and the transfer of the bank’s SME portfolio to the National Bank of Pakistan (NBP), a process expected to conclude within three months.
The cabinet was asked to approve the resignation of Tahir Hassan Qureshi, effective January 30, 2024, and the appointment of Qasim Nawaz as President/CEO for three months or until the winding-down process is finished, as recommended by the SBP and in accordance with the Banks (Nationalisation) Act, 1974.
