Pakistan aims to double financing for small and medium-sized enterprises (SMEs) from Rs. 1.1 trillion to Rs. 2.2 trillion by 2028, following directives issued by Prime Minister Shehbaz Sharif. Chairing a meeting on the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad, the prime minister highlighted the sector’s potential to support economic growth, generate business opportunities and expand employment across the country. He directed the relevant authorities to improve access to business loans and introduce measures that help entrepreneurs establish and expand their businesses. The initiative forms part of broader efforts to improve the financing environment for smaller enterprises and increase their contribution to Pakistan’s economy.
The prime minister instructed SMEDA to develop a detailed plan to raise public awareness about available business financing options and explain the procedures for obtaining bank loans. The authority was also directed to prepare sector-specific feasibility studies with the help of industry experts and make them available in local languages. These studies are intended to help aspiring entrepreneurs assess business opportunities, understand sector requirements and make informed investment decisions. The government also plans to improve SMEDA’s role in business training and financing facilitation so that prospective entrepreneurs can access relevant guidance when planning new ventures or expanding existing operations.
The government has placed particular emphasis on creating business opportunities in underdeveloped areas, where limited access to finance and business support can restrict local economic activity. Prime Minister Shehbaz said expanding opportunities in these regions could help reduce migration to major cities and contribute to more balanced national development. Better access to financing, technical assistance and entrepreneurship guidance could help small businesses establish operations closer to their communities. The proposed feasibility studies in local languages are also intended to make business information more accessible to people who may not have the resources or expertise to conduct detailed market research independently.
The financing target follows other government measures aimed at improving credit access for smaller businesses, including plans for a digital portal to provide information on bank lending and credit facilities. The wider programme seeks to address barriers that prevent SMEs from obtaining financing and to improve the support available to entrepreneurs. However, reaching the Rs. 2.2 trillion target will depend on implementation by relevant institutions, lending activity by banks and the ability of businesses to meet financing requirements. The government has not detailed the complete implementation schedule for the latest directives, but the target establishes a clear objective for expanding SME financing by 2028.
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