Provinces Urged to Lead SME Financing Efforts by SMEDA

The Small and Medium Enterprises Development Authority (SMEDA) convened five meetings with regional stakeholders including banks and industries departments from Sindh, Balochistan, Khyber-Pakhtunkhwa, AJK, and Gilgit-Baltistan. The Special Assistant to PM Haroon Akhtar Khan advised these gatherings.

Chief Executive Officer of SMEDA, Nadia Jahangir Seth, directed the replication of the successful SME financing scheme developed by the Bank of Punjab. This scheme has benefited over 110,000 people with nearly half from low-income groups.

Prime Minister Shehbaz Sharif emphasized expanding credit access to SMEs during steering committee meetings. He highlighted SMEDA’s role in promoting finance access as a business plan pillar and expressed resolve to improve Pakistan’s SME finance ecosystem.

SMEs face demand-side challenges such as financial literacy and training, which SMEDA could help address. Banks and financial institutions have a significant role, with provincial governments taking ownership and leading efforts.

The SBP presentation revealed current SME financing stands at Rs30.48 billion in K-P, Rs7.19 billion in Balochistan, Rs3.96 billion in G-B, and Rs5.48 billion in AJK. The SEDF has supported over 250 projects and 10,000 microloans.