PM orders doubling of SME financing to Rs2.2trn

Pakistan's Prime Minister Shehbaz Sharif has ordered a doubling of financing for small and medium-sized enterprises (SMEs) to reach Rs2.2 trillion by 2028. During a meeting on reforms at the Small and Medium Enterprises Development Authority (SMEDA), Sharif emphasized the potential of SMEs to spur economic growth and stressed the need to empower entrepreneurs through better access to finance and business opportunities.

SMEDA is tasked with developing a comprehensive strategy to raise awareness about business loans, clarify financing procedures, and encourage entrepreneurship nationwide. The prime minister also requested feasibility studies for establishing SMEs in various sectors to be prepared by experts and made available in local languages to help aspiring entrepreneurs.

He highlighted the importance of developing underdeveloped areas to reduce urban migration and promote balanced national development. Officials presented reforms aimed at turning SMEDA into a central platform offering training to entrepreneurs and facilitating their access to bank financing. Offices are being set up across Pakistan to enhance SMEDA's reach to the SME sector, while an AI-powered helpline is being developed to provide information and guidance in local languages.

SMEDA and Alibaba signed a memorandum of understanding under which 10,000 SMEs will receive training over two years. Reforms are also underway to improve the efficiency and user-friendliness of the SME digital portal. The meeting was attended by federal ministers and senior officials from relevant departments.