SMEDA, SBP explore cluster-based lending for SMEs

Laahore: The Small and Medium Enterprises Development Authority (SMEDA) partnered with the State Bank of Pakistan (SBP) to host a seminar on cluster-based lending research, aimed at broadening financing options for Pakistan's Small and Medium Enterprises (SMEs). Attendees included financial institutions, industry stakeholders, and key partners to discuss enhancing SME access to formal financing and strengthening banking sector ties.

SMEDA CEO Nadia Jahangir Seth emphasized converting research and industry insights into viable lending options for financial entities. She added that understanding individual SME clusters could help banks create tailored financing solutions. Dr Muhammad Saleem, Head of Department, SH&SFD, SBP, delivered a keynote address, followed by a presentation on cluster-based lending studies.

SMEDA General Manager Raja Hassanien Javaid mentioned that SME development, competitiveness, and access to finance remained key priorities. Finance for SMEs grew by 30.5 percent year-on-year, rising from Rs691 billion to Rs901.6 billion as of June 2026, with borrower count increasing by 15.18 percent to 318,585 businesses. SMEs account for 40 percent of GDP, 30 percent of exports, and employ over 80 percent of non-agricultural workers.

The seminar also addressed the SME Credit Scoring Services Model, a standardised credit risk assessment tool for SMEs developed by SMEDA, to be tested by participating banks as a supplementary assessment aid for financial institutions.