Govt forms Finance Task Force to expand SME lending

The federal government on Tuesday announced fresh measures to improve access to finance for small and medium enterprises (SMEs), with Finance Minister Muhammad Aurangzeb unveiling a dedicated Finance Task Force and Prime Minister Shehbaz Sharif directing authorities to work with banks on specialised lending products.

Addressing the Pakistan Banking Summit 2026 in Karachi, hosted by the Pakistan Banks Association (PBA), Senator Aurangzeb said the task force would focus on expanding SME financing and supporting economic activity.

He said the government had taken steps to promote documentation of the economy, including reductions in advance tax, subsidies and super tax. He added that super tax had been completely abolished for businesses with turnover of up to Rs500 million.

Separately, chairing a review meeting on the performance and future roadmap of the Small and Medium Enterprises Development Authority (SMEDA), Prime Minister Shehbaz directed the organisation to prepare a financing strategy in coordination with the State Bank of Pakistan (SBP) and commercial banks.

The prime minister said easier credit access was needed to boost exports, encourage entrepreneurship and accelerate economic growth. He also called for measures to improve awareness of available financing options and simplify access to credit.

PM Shehbaz directed SMEDA to support entrepreneurs in preparing feasibility studies and provide technical assistance at different stages of setting up, running and expanding businesses.

He also emphasised support for farmers involved in value addition through processing of agricultural produce and fruits, saying they should be helped with finance and business knowledge to build sustainable processing ventures.

The prime minister directed SMEDA to introduce measures for youth and women entrepreneurs to help them establish and expand SMEs.

Officials briefed the meeting that arrangements had been finalised for around 700 Pakistani SMEs to participate in 16 international exhibitions and trade events this year to improve market access and exports.

The meeting was also informed that SMEs in 35 cities had received training in financial regulations and business management.