SBP instructs banks to adopt digital supply chain

KARACHI: The State Bank of Pakistan (SBP) has issued instructions to banks to develop and implement digital solutions for supply chain finance (SCF)

within six months to increase small and medium enterprises’ access to finance, a statement said on Tuesday.

The circular issued by the SBP requires banks to leverage the technology for establishing effective SCF functions with suitably trained human resources and systems to develop and offer digital SCF products to SMEs and digitize retail payments.

“The banks have been further advised to either develop their digital solutions for SCF or partner with any fintech, service providers for providing these services,” the SBP said.

“The DSCF solutions will not only increase access of SMEs to finance but also improve operational efficiency, reduce costs, and strengthen risk management practices,” it added.