KARACHI: Pakistan aims to increase financing for Small and Medium Enterprises (SMEs) to Rs1.5 trillion ($5.4 billion) and expand the number of SME borrowers to 750,000 by June 2028, central bank Governor Jameel Ahmed said.
In Pakistan, SMEs account for more than 90 percent of all businesses, contribute an estimated 40 percent of the country’s gross domestic product (GDP), generate approximately 25 percent of exports, and employ around 78 percent of the non-agricultural workforce.
Addressing the Pakistan Banking Summit (PBS) in Karachi, Ahmed said the number of SME borrowers in Pakistan increased by approximately 75 percent between June 2021 and December 2025.
“Together with the government, we have set a target of increasing SME financing to Rs1.5 trillion ($5.3 billion) by June 2028,” he said. “We also aim to expand the number of SME borrowers to 750,000.”
The announcement follows Prime Minister Shehbaz Sharif’s directive to authorities on Tuesday to make financing more accessible for SMEs in order to boost exports.
He had also instructed officials to encourage commercial banks to introduce dedicated SME lending products and support young entrepreneurs including women in establishing SMEs.
Finance Minister Muhammad Aurangzeb also announced on Tuesday the formation of a dedicated SME Finance Task Force to boost bank lending to the sector.
Pakistan has been focusing on SMEs to boost exports by implementing a comprehensive strategy that includes expanding access to credit, providing tax relief, and launching an AI-driven platform for women entrepreneurs.
Access to finance, however, remains a significant barrier in the Pakistani SME sector. According to a 2023 study by the Competition Commission of Pakistan, SMEs receive only about 6-7 percent of private-sector credit.
