ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting to review progress on access to finance specifically for Small and Medium Enterprises (SMEs), with a view to assessing ongoing initiatives and identifying measures to further deepen and widen financing opportunities for businesses across the country.
The Finance Minister underscored the importance of improving access to finance for SMEs, recognising their role in supporting economic activity, investment and the Government’s broader agenda of export-led growth.
He emphasised the need to ensure that financing reaches a wider range of businesses, particularly smaller and export-oriented enterprises.
The meeting reviewed progress in SME financing, including lending volumes and the number of borrowers. It was observed that while progress had been made in expanding financing, increasing the number of new SME businesses accessing formal credit remained a key priority.
How commercial banks, microfinance banks and non-banking finance companies are expected to broaden financial outreach was also discussed in detail.
The meeting also reviewed the recently launched SME Connect portal, an initiative aimed at enabling small businesses to directly apply for loans and facilitating access to financing from banks.
The portal is expected to improve transparency in the financing process and enable SMEs to engage with financial institutions more effectively. The Finance Minister appreciated the initial progress made in this regard since the launch this week, given the keen interest shown by thousands of applicants, and emphasised the importance of further strengthening the platform and streamlining related processes to make it more accessible and efficient for businesses.
The Finance Minister highlighted the need for a more focused approach to SME financing, taking into account the different needs of micro, small and medium-sized businesses. He also underscored the importance of better utilisation of dedicated financing limits, particularly for export-related activities, and continued engagement between the banking sector and relevant institutions to address gaps in access.
The discussion highlighted the progress made in expanding SME financing and the potential to build on these efforts through stronger coordination among banks, financial institutions and relevant stakeholders.
The participants emphasised the importance of ensuring that SMEDA remains coordinated with lenders in capacity building and jointly creating pathways that translate into loans for SMEs, enabling wider outreach, as SMEs can significantly contribute to formalised economic activity and export growth.
Emphasising the need for focused and coordinated action, the Finance Minister directed that access to finance remain the focus of the current deliberations. Follow-up discussions would also review the SME Connect portal and related financing processes, as well as the review and resolution of regulatory hurdles by relevant line ministries.
The meeting was attended by Federal Minister for National Food Security and Research, Rana Tanveer Hussain; Federal Minister for Commerce, Mr. Jam Kamal Khan; Federal Minister for Climate Change and Environmental Coordination, Dr. Musadik Masood Malik; Adviser to the Prime Minister on Industries and Production, Mr. Haroon Akhtar Khan; Minister of State for Finance, Mr. Bilal Azhar Kiyani; Governor, State Bank of Pakistan; Chairman, Securities and Exchange Commission of Pakistan; representatives of the Pakistan Banks Association; Chief Executive Officer, SMEDA; federal secretaries from relevant divisions; and senior representatives of the Finance Division, SBP and SECP.
