PM’s SME vision: SAPM calls for expanded credit access across underserved regions

Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, has emphasized the need for coordinated efforts nationwide to improve access to credit for micro, small, and medium enterprises (MSMEs), aligning with Prime Minister Mian Shehbaz Sharif’s SME development vision.

Addressing a joint meeting of key financial institutions, the SAPM directed the Small and Medium Enterprises Development Authority (SMEDA) to work closely with provincial governments, banks, and other stakeholders to expedite financing, particularly in underserved areas of Balochistan, Khyber Pakhtunkhwa, and Azad Jammu & Kashmir. Attendees included representatives from the State Bank of Pakistan (SBP), Pakistan Banking Association (PBA), Bank of Punjab (BOP), Bank of Khyber (BOK), Sindh Bank (SB), National Bank of Pakistan (NBP), Habib Bank Limited (HBL), and the Punjab Small Industries Corporation (PSIC).

Highlighting successful initiatives, Akhtar lauded Punjab’s Asaan Karobar Finance Scheme, under which more than Rs100 billion has been disbursed to over 110,000 entrepreneurs in less than a year, with almost 50 percent of borrowers from low-income groups. He urged other provinces to replicate the model and increase SME financing coverage nationwide.

CEO SMEDA Nadia Jahangir Seth said her organization is committed to strengthening the SME finance ecosystem through coordinated programs with provincial governments, banks, and other institutions. She noted that SMEDA would focus on developing feasible financing programs and supporting entrepreneurs to scale up their businesses.

Officials noted gaps in SME financing in Khyber Pakhtunkhwa and Balochistan, contrasting with Sindh Bank’s Rs10 billion portfolio in Sindh. Representatives highlighted the need to expand coverage in underserved regions and called for greater collaboration between SMEDA and financial institutions.

State Bank officials also shared that Pakistan’s SME financing models have drawn international attention, with the Philippines and Bangladesh expressing interest in studying and potentially replicating the schemes. Bank of Punjab senior officer Asif Riaz recommended SMEDA’s participation in the SME Forum to enhance joint efforts.

Financial institutions at the meeting reaffirmed their commitment to strengthen SME-focused products and expand financing in coordination with SMEDA, supporting the government’s vision to bolster entrepreneurship and economic growth.