Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, has stated that the Government of Pakistan is extending maximum support to Micro, Small and Medium Enterprises (MSMEs), which have assumed a significant role in steering national economic growth during challenging times. He made these remarks while delivering the keynote address at an interactive session on World MSME Day 2026, hosted by the Small and Medium Enterprises Development Authority (SMEDA) at the Islamabad Chamber of Small Traders and Small Industries (ICSTSI).
MSME Development Central to Government's Agenda
The SAPM emphasized that MSME development remains central to the government's economic agenda. Under the leadership of Prime Minister Muhammad Shehbaz Sharif, the government is striving to improve access to finance, promote business formalization, and create new opportunities for enterprise growth through capacity building and training. A brief documentary highlighting SMEDA’s key initiatives set the tone for nationwide outreach activities on the UN-designated day.
Impressive Growth in SME Financing
Haroon Akhtar Khan highlighted that access to credit remains one of the foremost priorities, with encouraging growth in lending by banks and microfinance institutions. According to SBP published data as of March 31, 2026, Pakistan’s SME financing portfolio surged to Rs. 853.94 billion, up from Rs. 584.44 billion on March 31, 2025—an impressive growth of 46 percent. Similarly, the number of SME borrowers rose to 312,355 as of March 31, 2026, compared to 203,139 on March 31, 2025, an increase of 53.7 percent.
Support for Women Entrepreneurs and Microenterprises
The government is equally committed to providing support to women entrepreneurs and microenterprises, especially those in underserved areas, to ensure a vibrant and globally competitive MSME ecosystem capable of driving inclusive and sustainable economic growth. Khan noted that collaboration with Alibaba, JICA, PIFD, and microfinance institutions is meant to provide a springboard for MSMEs to gain access to markets. "The government’s aim is enduring prosperity of our MSMEs," he said.
SMEDA's Initiatives and Vision
Ms. Nadia Jahangir Seth, Chief Executive Officer of SMEDA, said World MSME Day provides an opportunity to recognize the resilience, innovation, and contribution of millions of Pakistani entrepreneurs to the national economy. Highlighting SMEDA’s key initiatives being executed under a robust three-year Business Plan, she said the organization, under a renewed vision and strategic direction set by the Ministry of Industries and Production and Board of Directors, is trying to deliver by making MSMEs bankable and digitally equipped, promoting business formalization through free registration via the SME Registration Portal (SMERP), export readiness, inter-firm linkages, and climate initiatives.
She cited key projects, including the SME Certification and International Accreditation Grant Programme and a five-year project to convert banana waste into eco-friendly textile. In light of Prime Minister Shehbaz Sharif’s vision of inclusive economic growth, she said SMEDA is reaching out to women-led and microenterprises to equip them with digital and financial literacy, product development, and export readiness, and providing them opportunities for market access, B2B linkages, and value chain integration. Ms. Seth added that SMEDA remains committed to creating an enabling environment that helps enterprises become more competitive, bankable, and globally connected.
Public-Private Collaboration Essential
Meanwhile, Islamabad Chamber of Small Traders and Small Industries President Awais Satti welcomed the government's renewed focus on MSME development and appreciated the initiatives being undertaken through SMEDA. He said stronger public-private collaboration and improved access to finance and markets are essential for unlocking the true potential of Pakistan's MSME sector. World MSME Day is observed globally on June 27 to recognize the contribution of MSMEs to employment generation, innovation, and sustainable economic growth.
Nationwide Outreach Activities
This year, SMEDA organized interactive sessions and discussions in multiple cities including Islamabad, Rawalpindi, Lahore, Faisalabad, Gujranwala, Gujrat, Sialkot, Multan, Sargodha, Abbottabad, Hyderabad, Dadu, Sukkur, and Mirpur. In Lahore, SMEDA, in collaboration with the Lahore Chamber of Commerce and Industry (LCCI), organized a stakeholder engagement session. Faheem Ur Rehman Saigol, President LCCI, graced the occasion as chief guest and highlighted the importance of entrepreneurship and enterprise development in strengthening Pakistan's economy. He appreciated the role being played by MSMEs in creating employment opportunities, fostering innovation, and promoting inclusive economic growth. Muhammad Javed Afzal, Regional Chief, Central, SMEDA, highlighted the significance of World MSME Day and briefed participants on SMEDA's mandate, services, and ongoing initiatives for MSME development. The session also provided an opportunity for participants to share recommendations aimed at improving the business environment and enhancing the competitiveness of local enterprises.
