Iqbal Hamid Trust

Roundtables on Access to Finance for Energy and Resource Efficiency

Karachi: July 18, 2011 & Lahore: July 25, 2011

SCI-Pak project conducted two half day orientation sessions for the industrial associations on Access to Finance for SMEs on July 18, 2011 at Sheraton Hotel, Karachi and on July 18, 2011 at Serena Hotel Faisalabad. The objective of these sessions was to apprise industrial associations, SMEs and chambers of commerce about how those SMEs could be facilitated by the financial institutes (Banks) for getting finances for the implementation of Energy and Resource Efficiency (E&RE) technologies. These sessions proved to be useful in making better communication among all the stakeholders and to understand well each others requirements.

Mr. Julio Andres from CSCP presented the best cases on E&RE improvements globally. Mr. Shafqat Ullah from CPI presented the business cases of E&RE of the pilot projects and sowed that these E&RE initiatives have not only the business sense but also the environmental and energy improvement. Mr. Ammar Yasser guided the participants that how these business cases could be prepared for the banks to get loans. After that the representative of State Bank of Pakistan apprised of the participants about different existing financial services and products for the SMEs. At the end the representative from the commercial bank informed the participants that how banks could assist SMES for access to finance for the E&RE initiatives. Training materials were prepared which included the following:

  • Best cases on E&RE improvements globally.
  • How to prepare a business case for energy and resource efficiency interventions.
  • Sharing of experiences: Pilot initiatives under SCI-Pak that have developed business cases for E & RE.
  • Existing financial services and products.

The business associations were apprised of decision making process of Financial institutions. They were convinced about why is Energy and Resource Efficiency a promising Business i.e. to Save Money & Reduce Costs, to Reduce Risks, to Gain competitive advantage over more wasteful competitors, Increase access to capitals and contracts and to Improve brand reputation. Various Resource Efficiency-driven Business Models were presented among the participants. Business cases of pilot projects of caustic recovery plant at Kamal Limited, chrome recycling at MH Tannery, waste heat boiler at Nimra Textile and rice husk boilers at Crescent Textiles were presented and their financial requirements and rate of returns were presented. The participants were offered practical insight into Preparing a Business Case to achieve financial closure. It contained information on complete life cycle of financial applications to the financial institutions. Existing financial services and products were discussed by State Bank of Pakistan representatives. SMEs were educated on Regulatory Framework FOR SMEs and SME Financing Schemes by SBP including Credit Guarantee Scheme and Refinancing Scheme for Modernization of SMEs.

Energy and resource efficiency network was presented as well and participants were requested to be part of the network and take benefit from the information available at the portal. Various financial institutions present at the training sessions informed the participants about their various financial products.

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