Provincial and federal authorities have announced significant initiatives targeting financial accessibility, capacity building, and ecosystem development.
Punjab Chief Minister Maryam Nawaz Sharif has unveiled plans to stimulate SME growth in the province by introducing two financing schemes: the ‘Business Card’ and the ‘Chief Minister Easy Business Financing Scheme.’ These initiatives aim to provide financial support to small and medium business owners and encourage entrepreneurship across the province.
Under the Business Card scheme, medium-scale business loans ranging from Rs 1 lakh to Rs 10 lakh will be offered. For larger enterprises, the Chief Minister Easy Business Financing Scheme will provide loans of up to Rs 3 crore (30 million). Borrowers under this scheme will have five years to repay, with an initial three-month grace period after receiving the first installment.
To ensure SMEs’ integration into industrial zones, the CM also directed authorities to allocate separate spaces for small and medium industries in major cities. Furthermore, preferential loans will be available for IT startups in the Nawaz Sharif IT City, enabling innovative businesses to thrive. However, Business Card usage will be restricted in ten non-essential categories, including restaurants.
Meanwhile, on the federal level, the Small and Medium Enterprises Development Authority (SMEDA) and the Pakistan Banks’ Association (PBA) have signed a Memorandum of Understanding (MoU) to address SMEs’ financing challenges. Federal Minister for Industries and Production Rana Tanveer Hussain, who witnessed the signing, emphasised the sector’s importance, noting that SMEs account for 40% of Pakistan’s GDP and 78% of non-agricultural employment.
The collaboration aims to strengthen the financial literacy of SMEs, improve access to subsidised financing schemes, and foster inclusivity, particularly for women entrepreneurs. The MoU outlines initiatives such as capacity building, sector-specific research, and advocacy for SME-friendly policies.
While SMEs contribute significantly to Pakistan’s economy, their growth is hindered by limited access to formal financing. Federal Secretary Saif Anjum highlighted the lack of financial support in underserved areas as a critical barrier. However, SMEDA CEO Socrat Aman Rana expressed optimism, noting that the MoU marks a “positive start” to bridging these gaps. Chairman PBA Zafar Masud echoed this sentiment, emphasising that SME financing remains a priority for the banking sector.
