The State Bank of Pakistan (SBP) has instructed banks to create and implement digital solutions for supply chain finance within six months. The aim is to utilize technology to enhance access to finance for small and medium enterprises (SMEs) and to digitize retail payments.
According to the circular issued by SBP, banks must establish effective Supply Chain Finance (SCF) functions with appropriately trained human resources and systems. These functions will develop and offer digital SCF products to SMEs. Banks are encouraged to either create their own digital solutions for SCF or collaborate with fintech service providers to offer digital SCF. The introduction of DSCF solutions is expected to not only increase SMEs’ access to finance but also enhance operational efficiency, decrease costs, and bolster risk management practices.
