SMEDA pledges stronger partnerships to boost SME credit access nationwide

The Small and Medium Enterprises Development Authority (SMEDA) has committed to enhancing collaboration with provincial governments, the Pakistan Banks Association, and other stakeholders to improve access to credit for Small and Medium Enterprises (SMEs) across Pakistan.

The announcement came during a high-level meeting on SME financing chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan. SMEDA CEO Nadia Jahangir Seth emphasized that promoting access to finance remains a cornerstone of SMEDA’s business strategy and pledged to accelerate efforts to strengthen the SME finance ecosystem.

Highlighting the need for a coordinated national approach, Haroon Akhtar Khan called on federal and provincial authorities, financial institutions, and development partners to work together in enhancing SME financing. He instructed SMEDA to lead initiatives that build partnerships and streamline credit access, particularly in Balochistan, Khyber Pakhtunkhwa, and Azad Jammu & Kashmir.

“The authority must actively engage stakeholders and facilitate linkages that help entrepreneurs secure financing and grow their businesses,” he said, urging the formation of a working group to coordinate training and connectivity efforts.

The Punjab government’s Asaan Karobar finance scheme was highlighted as a model of success. A presentation by the Punjab Small Industries Corporation revealed that under the scheme, implemented through the Bank of Punjab, Rs100 billion has been disbursed to over 110,000 entrepreneurs in under a year, with nearly half of borrowers coming from low-income groups. Haroon Akhtar encouraged other provinces to replicate this initiative to expand the reach of SME financing.

Officials from the State Bank of Pakistan reviewed the country’s SME financing landscape, noting regional progress but stressing gaps in Khyber Pakhtunkhwa and Balochistan. Sindh Bank reportedly manages a portfolio of Rs10 billion in SME loans, whereas KP and Balochistan currently lack significant schemes.

The meeting also featured contributions from Bank of Punjab senior officer Asif Riaz, who suggested SMEDA participate in the SME Forum for enhanced collaboration, and representatives from provincial governments, HBL, Bank of Khyber, National Bank of Pakistan, Sindh Bank, and other key stakeholders.

Participants concluded the session with a joint commitment to fast-track initiatives, strengthen institutional coordination, and create a more inclusive and accessible financing ecosystem for SMEs across Pakistan.