PSX, SMEDA, ICCI enter deal

KARACHI: Pakistan Stock Exchange (PSX) on Friday entered a Memorandum of Understanding (MoU) with Small and Medium Enterprises Development Authority (SMEDA) and Islamabad Chamber of Commerce & Industry (ICCI) to foster the growth of small-scale businesses, industries, and entrepreneurial ventures. 

Nadeem Naqvi, Managing Director PSX, and Javed Iqbal Khattak, General Manager SMEDA, signed the agreement that calls for conducting joint awareness sessions, workshops and training for Small and Medium-Sized Enterprises (SMEs). 

During the signing ceremony, the stakeholders agreed there is a dire need to encourage SMEs growth in Pakistan as these account for 80 percent of non- agricultural labour force, while their ability to access bank financing is usually very limited, primarily due to high collateral requirements. 

In order to facilitate access to equity financing for Small and Medium Enterprises (SMEs), PSX is all set to launch of its SME Board – a platform for SMEs to raise equity capital to fund their growth and expansion needs. 

Any public company with post issue paid-up capital worth no less than Rs25 million and no more than Rs200 million is eligible to get listed on the SME Board. To promote the SME sector and to encourage SMEs to get listed on the SME Board, PSX has endeavoured to make the listing procedure simple and easy. To reduce listing cost, listing fees of the Exchange have been capped at Rs. 50,000/-. 

A core objective of the MoU is to generate awareness amongst SME’s regarding the benefits of listing in terms of not just obtaining financing for growth but also to create proper corporate structure for long term business sustainability, improved branding, have greater credibility with buyers and suppliers and importantly, managing and growing family wealth in a manner that avoids conflict within families.