Karachi: The State Bank of Pakistan on Tuesday directed banks to develop and implement digital solutions for supply chain finance within six months to use technology to improve the ability of SMEs to finance and digitize retail payments.
Considering the critical importance of Digital Supply Chain Finance (DSCF), the central bank’s SME, Housing and Sustainable Finance Ministry has ordered banks to take measures to develop and increase their capacity in DSCF and DSCF priorities.
The circular requires banks to build an effective supply chain finance function (SCF) that prepares staff and systems to develop and offer SCF digital products to SMEs.
Banks have been advised to develop their own digital solutions for SCF or partner with Fintech or service providers to provide digital SCF.
SBP hopes that the DSCF solution will not only improve SMEs’ access to finance, but also improve business efficiency, reduce costs and improve risk management.
To ensure the implementation of the directive within six months, SBP has directed banks to develop a strategy to strengthen the capacity of banks in SCF and DSCF and share it with the banking regulator within 3 months of its issuance. circle
