Banks lend PKR 8.8T to SMEs under financing schemes in Pakistan

Pakistan’s banks have lent PKR 8.82 trillion to small and medium enterprises (SME), officials said at the 15th meeting of the National Coordination Committee (NCC) on SME development.

The financing was extended to 302,922 borrowers under various SME lending schemes.

The meeting was chaired by Haroon Akhtar Khan, special assistant to the prime minister, and attended by Secretary of Industries Saif Anjum, the chief executive officer of the Small and Medium Enterprises Development Authority (SMEDA), as well as representatives from provincial ministries and the banking sector.

The meeting discussed the revised definition of SMEs, including an increase in the annual sales turnover threshold. Under the proposal, micro enterprises would be defined as businesses with annual sales of up to PKR 30 million, small enterprises from PKR 30 million to PKR 400 million and medium enterprises from PKR 400 million to PKR 2 billion.

Khan said revising the definition and scope of SMEs was “the need of the hour” and emphasized that both federal and provincial institutions would adopt the new criteria.

He added that the federal government and all provinces were on the same page regarding the updated definition.

The PM’s adviser also directed SMEDA and provincial authorities to ensure regular follow-ups and progress reporting on policy measures.

“SMEs are the backbone of the economy,” Khan said, adding that under the leadership of Prime Minister Shehbaz Sharif, the government was taking all possible steps to promote SME growth.

He said access to finance remained a fundamental driver for SME development and noted that all banks were prepared to cooperate.

The government will ensure provision of loans and related facilities to SMEs from Gilgit-Baltistan to Azad Jammu and Kashmir and Balochistan, he said.

Khan also highlighted that the industrial policy places special emphasis on easier access to credit and tax relief measures.

He described the introduction of skill development bonds and artificial intelligence training programs for SMEs as encouraging initiatives, adding that SMEDA’s provision of modern skills and AI training marked significant progress for the sector.