PM calls for coordinated SME lending plan to spur exports and business growth

The federal government is moving to expand financing for small and medium enterprises (SMEs), with Prime Minister Shehbaz Sharif directing the preparation of a joint strategy involving the State Bank of Pakistan (SBP), commercial banks and the Small and Medium Enterprise Development Authority (SMEDA) to improve access to business loans.

During a review meeting on SMEDA's performance on Tuesday, the premier said expanding credit availability for SMEs was essential to increasing exports and accelerating economic activity. He instructed commercial banks to introduce dedicated lending products designed specifically for the sector to improve financing options for businesses.

Beyond credit, the prime minister directed SMEDA to provide greater technical assistance to entrepreneurs, including support in preparing feasibility studies and completing other requirements needed to secure financing. He also called for immediate steps to eliminate barriers slowing the development of SMEs.

Highlighting the role of agriculture-based businesses, Shehbaz instructed authorities to improve awareness of financing schemes and facilitate loans for the processing of agricultural produce and fruits, saying greater value addition could benefit farmers and strengthen export-oriented industries.

He further directed SMEDA to intensify its support for young entrepreneurs, particularly women, in establishing and expanding small and medium-sized enterprises.

Officials told the meeting that SMEDA had enabled 700 SMEs to participate in 16 international business events during the year, helping Pakistani firms explore global markets and boost exports. They also reported that training on financial regulations and business management had been delivered to SMEs in 35 cities.

The meeting was attended by Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Federal Minister Dr Musadiq Malik, Special Assistant Haroon Akhtar and senior government officials, while the chief secretaries of all four provinces and sector experts participated through video link.