ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday directed authorities to make financing more accessible for small and medium-sized enterprises (SMEs) to boost exports and economic growth as Finance Minister Muhammad Aurangzeb announced a dedicated task force to expand bank lending to the sector.
The parallel announcements highlighted the government’s efforts to address one of the biggest constraints facing Pakistan’s SME sector, which accounts for more than 90 percent of businesses, contributes an estimated 40 percent of gross domestic product (GDP), generates around a quarter of exports and employs about 78 percent of the non-agricultural workforce.
Yet SMEs receive only about 6-7 percent of private-sector credit, according to a 2023 study by the Competition Commission of Pakistan.
“The prime minister directed that a comprehensive strategy be prepared with the State Bank and commercial banks to improve SMEs’ access to financing,” his office said after Sharif chaired a meeting to review the performance of the Small and Medium Enterprises Development Authority (SMEDA).
The prime minister also instructed officials to encourage commercial banks to develop dedicated lending products for SMEs, help businesses prepare feasibility studies and support young entrepreneurs, including women, in establishing SMEs.
Separately, Aurangzeb announced the establishment of an SME Finance Task Force while addressing the Pakistan Banking Summit 2026 in Karachi.
“The Task Force will be led by the State Bank of Pakistan (SBP) with senior representation from the Pakistan Banks’ Association (PBA), Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce and industry, and the
Ministry of Finance,” he told a conference in Karachi.
Both officials highlighted the important of smooth lending to SMEs for enhanced exports and economic growth.
