PM orders comprehensive SME financing strategy to unlock export growth

July 07, 2026 (MLN): In a renewed push to unlock the potential of Pakistan's small businesses, Prime Minister Shehbaz Sharif has directed authorities to formulate a comprehensive strategy to improve small and medium enterprises' (SMEs) access to financing, describing the sector as a key driver of exports, employment, and economic growth.

Chairing a review meeting of the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad, the prime minister instructed officials to prepare the strategy in coordination with the State Bank of Pakistan (SBP) and commercial banks to address long-standing financing constraints faced by SMEs.

Shehbaz Sharif emphasized that easier access to credit is essential for expanding the country's export base and directed relevant institutions to provide greater facilitation in extending loans to SMEs.

The prime minister also called for targeted support to strengthen the capacity of small businesses, particularly farmers involved in the processing of agricultural produce and fruits.

He stressed the need to create awareness about available financing options while simplifying access to loans for the agriculture value chain.

To encourage greater private sector participation, Shehbaz Sharif directed commercial banks to design dedicated financial products tailored to the needs of SMEs, enabling businesses to obtain financing on more suitable terms.

Recognizing that access to finance alone is insufficient, the prime minister instructed SMEDA to assist entrepreneurs in preparing feasibility studies and provide technical support throughout different stages of establishing and expanding businesses.

He also ordered urgent steps to remove regulatory and operational bottlenecks that continue to hamper the growth of the SME sector, noting that improving the business environment is critical to increasing investment and productivity.

The prime minister further directed SMEDA to enhance support for young entrepreneurs, including women-led businesses, by helping them establish and grow small and medium-sized enterprises.

The directives come as the government intensifies efforts to strengthen the SME sector, which accounts for a significant share of employment and economic activity but continues to face limited access to formal financing.

The latest initiative complements the government's broader agenda of promoting private sector-led, export-oriented, and sustainable economic growth.

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