Shehbaz Pushes SME Financing Strategy to Boost Exports
Prime Minister Shehbaz Sharif on Tuesday directed authorities to prepare a comprehensive financing strategy for Pakistan’s small and medium-sized enterprises, placing SME growth at the centre of the government’s latest economic push. The directions were issued during a review meeting of the Small and Medium Enterprises Development Authority in Islamabad.
The prime minister asked Smeda to work with the State Bank of Pakistan and commercial banks to remove financing bottlenecks faced by small businesses. The move signals a renewed attempt to connect entrepreneurs with formal credit channels at a time when limited access to affordable capital remains one of the biggest hurdles for business expansion.
According to the Prime Minister’s Office, Shehbaz said stronger facilitation was needed so that loans could be extended to SMEs in a way that directly supports export growth. He also highlighted the need to improve productive capacity, particularly for farmers and small businesses involved in processing agricultural produce.
The premier further directed commercial banks to design financial products specifically suited to SME requirements instead of relying on conventional lending models that often fail to match the needs of smaller enterprises. He also called for support in feasibility studies and other technical steps required to establish or expand a business.
Officials briefed the meeting on ongoing Smeda initiatives, including efforts to help Pakistani SMEs reach international markets. The meeting was told that 700 enterprises had been facilitated during the current year to participate in 16 international events, giving businesses exposure to foreign buyers, trade networks and export opportunities.
The briefing also covered training programmes held across 35 cities, where enterprises received guidance on financial regulations and business development. Such training is considered important because many small business owners struggle not only with credit access, but also with documentation, compliance, market linkages and structured growth planning.
A key part of the prime minister’s direction focused on young entrepreneurs and women-led businesses. He instructed Smeda to provide targeted assistance to help them set up small and medium enterprises, a step that could broaden participation in the formal economy and create new employment opportunities in sectors beyond traditional large-scale industry.
Pakistan’s SME sector is often described as a crucial part of the national economy because it supports livelihoods, local manufacturing, services, trade and supply chains. However, the sector has long faced obstacles such as limited collateral, weak advisory support, high borrowing costs, informal operations and difficulty accessing export markets.
The policy emphasis on SMEs also reflects wider economic priorities, including job creation, export diversification and rural value addition. If banks respond with practical products and Smeda improves business support, small enterprises could play a larger role in turning local production into higher-value goods for domestic and international markets.
The next stage will depend on how quickly Smeda, the central bank and commercial lenders translate the prime minister’s instructions into workable financing mechanisms. Business groups and entrepreneurs will be watching whether the promised strategy produces easier loan access, clearer procedures and measurable support for firms seeking to grow.