PM Directs Comprehensive Strategy for SME Credit Access
Prime Minister Shehbaz Sharif on Tuesday directed authorities to make financing more accessible for small and medium-sized enterprises (SMEs) to boost exports and economic growth. The directive came during a meeting to review the performance of the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad.
According to the prime minister's office, Sharif instructed that a comprehensive strategy be prepared with the State Bank of Pakistan and commercial banks to improve SMEs’ access to financing. He also urged commercial banks to develop dedicated lending products for SMEs, help businesses prepare feasibility studies, and support young entrepreneurs, including women, in establishing SMEs.
SME Sector: Backbone of Pakistan's Economy
SMEs account for more than 90 percent of all businesses in Pakistan, contribute an estimated 40 percent of gross domestic product (GDP), generate around a quarter of exports, and employ about 78 percent of the non-agricultural workforce. Despite this, the sector receives only about 6-7 percent of private-sector credit, according to a 2023 study by the Competition Commission of Pakistan.
Finance Minister Announces SME Finance Task Force
Separately, Finance Minister Muhammad Aurangzeb announced the establishment of an SME Finance Task Force while addressing the Pakistan Banking Summit 2026 in Karachi. “The Task Force will be led by the State Bank of Pakistan (SBP) with senior representation from the Pakistan Banks’ Association (PBA), SMEDA, chambers of commerce and industry, and the Ministry of Finance,” he said.
Both officials emphasized the importance of smooth lending to SMEs for enhanced exports and economic growth. The parallel announcements highlight the government’s efforts to address one of the biggest constraints facing Pakistan’s SME sector.
