1. ENTREPRENEURSHIP Lecture No: 37 BY CH. SHAHZAD ANSAR

2. Capital Sources in Pakistan

3. PROVINCIAL LEVEL INSTITUTIONS
Punjab Small Industries Corporation (PSIC)
In Punjab PSIC was established in 1972 as an autonomous body for the promotion and development of the small-scale industries in the province.
The PSIC covers the critical areas of investment promotion and provision of credits for setting up new industries and modernization of the existing ones.
It also promotes the common facility center, technology transfer, guidance, handicrafts development and design facilities.

4. Punjab Small Industries Corporation (PSIC) Contd…
It provides following type of services:
A) Financing and Loans
PSIC is providing two types of loans to its clients, working capital and capital investment loans
B) Industrial Estates
PSIC has developed 14 industrial estates in various areas of the Punjab
C) Services and Programs
PSIC has also launched “Rural Industrialization Program” to control unemployment and strengthen the marginal household income. 4

5. Sindh Small Industries Corporation (SSIC)
SSIC was established in 1972
It has motives to indulge into promotional activities of small-scale industries in Sindh.
The objectives of SSIC include financial assistance, education of craftsman, census and survey of cottage and small industries, procurement and distribution of raw materials to artisans and craftsman.
SSIC was also involved in the Prime Minister’s self-employment scheme for the dispersal of the micro credits.

6. Sindh Small Industries Corporation (SSIC) Contd…
It provides the following services:
Industrial Estates and Colonies
The SSIC has established 17 industrial estates in Sindh.
Total number of plots developed there are 1938
There are six different craftsman colonies established having 92 shops.
Financing Schemes
The SSIC also launched a credit scheme in 88,/89.
In October 1992, a self-employment scheme was started for locally manufactured machinery

7. Small Industries Development Board (SIDB) NWFP Contd…
It provides the following services:
Training Centers
SIDB has established carpet centers in five cities of NWFP
Development Programs and Model Projects
SIDB has also launched various women development programs
Industrial Estates
SIDB has established 9 industrial estates
Financial Assistance
SIDB is also managing different credit schemes for small industries

8. Directorate of Industries (Balochistan)
The directorate of industries was formed in 1976
It looks after all the promotional schemes for SMEs.
Further more, the directorate is also involved in providing various kinds of advisory and consultancy services.

9. Small Business Finance Corporation (SBFC)
It was established in 1972 as a federal entity.
The main aim was at the time of establishment, to assist small entrepreneurs for self-employment and setting up cottage industry.
The mark up was kept lower; the majority lending was towards self-employment leaving only 2% for small industries.

10. Restructuring SBFC
The management took over in year 2000 and restructured the entire corporation.
The restructuring was based on the facts that SBFC has deviated from its main aim resulting in a weak balance sheet.
There were 1400 employees at 96 branches. The internal control and management was highly ineffective with poor quality of human resources, poor work ethics, poor infrastructure and non-existence of training and development culture.

11. Regional Development Finance Corporation
The Regional Development Finance Corporation was established in 1985
The main objective are to promote the industrialization of the less developed areas of the country.
RDFC is a multi-product financial institution.
It participates in money market, capital market and micro credit delivery.
Besides financing of medium to large sized industrial concerns RDFC has been involved in disbursing micro and small sized loans.

12. Industrial Development Bank of Pakistan
IDBP is Pakistan’s one of the oldest development financing institution
Its primary objective is to extend term finance for investment in the manufacturing sectors in the economy.
As a part of its services the bank offers business development assistance through providing information on potential small-scale investment projects. In this regard numerous pre-feasibility studies have been developed for identification of viable sub sectors.