Pak: Italian soft loan launched for SMEs

Lahore: The project for disbursement of 7.75 million Euro soft loan by the Italian government to assist Small and Medium Enterprises (SMEs) in Pakistan was launched at Smeda office.

Ambassador of Italy in Islamabad, Vincenzo Prati was chief guest, of the occasion while Italian Trade Commissioner in Karachi, Dr Marco Pintus, Unido's Resident Officer in Islamabad, Shadia Yousif Bakhait, Unido's Bahrain Representative, Maytham Abbass, Chief Executive Officer, Smeda, Shahid Rashid and representatives of a number of other organisations attended the launch and awareness seminar.

An Investment Promotion Unit (IPU) has been launched at the office of Smeda under the project for setting up mutual assistance and co-operation programme between Smeda and Unido to be linked with the Unido's network of investment and technology promotion offices in Italy, following its pattern of operation and adoption of technology.

Italian Ambassador said that small and medium entrepreneurs producing goods in the agro, food, leather, marble, granite and gems sectors could apply for the loans. He said that 80 percent amount of the loan will be used for purchasing machinery and services from Italy. The loan will be repayable within seven years, with a grace period of 3 years.

These loans will be disbursed through SME banks and the bank will charge eight percent mark up for providing services and to cover foreign currency exchange risk. Further, a grant of 1.14 million Euro has also been given under the project for setting up the IPU office, he added. Smeda Chief said that the launch ceremony and seminar was aimed at creating awareness among the public for availing the Italian funding for promotion of SMEs, and added that a seminar in this regard will also be arranged in Karachi.