Pakistan eyes export-led growth through SME push, says Haroon Akhtar

The federal government is stepping up efforts to strengthen Pakistan's small and medium enterprise (SME) sector through higher financing, targeted policy reforms and greater access to international markets, as it seeks to drive export-led economic growth.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan said on Friday that SME financing had reached Rs584 billion as of March 31, while 53 percent of businesses had benefited from enhanced financial support, helping businesses expand operations and create employment.

Speaking at the World MSME Day 2026 ceremony, he said the government has also rolled out Rs30 billion worth of initiatives aimed at promoting SMEs, alongside reforms focused on improving access to finance and industrial land, simplifying taxation, enhancing the ease of doing business and resolving issues involving the State Bank of Pakistan.

Haroon Akhtar said Pakistan's economic future depends on building a stronger entrepreneurial ecosystem, arguing that countries investing in entrepreneurs, innovators and SMEs are more likely to emerge as global economic leaders.

He said Pakistan has around seven million SMEs, which contribute nearly 40 percent to gross domestic product, account for about 30 percent of exports and employ almost 80 percent of the country's non agricultural workforce.

To further strengthen the sector, the government is working to connect local businesses with overseas markets through digital platforms and has signed a memorandum of understanding with Alibaba to facilitate e commerce and online exports. It is also encouraging SMEs to participate in regional and international trade exhibitions, easing visa access for exporters and expanding outreach programmes to Gilgit Baltistan, Balochistan and Khyber Pakhtunkhwa.

He said the Small and Medium Enterprises Development Authority (SMEDA) is focusing on improving access to finance, encouraging business formalisation and documentation, and enhancing the competitiveness of Pakistani enterprises in both domestic and international markets.

Haroon Akhtar stressed that formally registered businesses are better positioned to secure bank financing and benefit from government support programmes.

Describing entrepreneurs as the driving force behind economic progress, he said job creators are the true builders of nations, while also calling for greater encouragement of women entrepreneurs, whose contribution to Pakistan's economy continues to grow.

The remarks came during an event jointly organised by the Islamabad Chamber of Small Traders and Small Industries and SMEDA, which was attended by government officials, business representatives and entrepreneurs from across the country.