IslamabadThe Pakistani Banks Association (PBA) has announced plans to create an indicator of small and medium -sized institutions (SMES) during the next year, designed to provide a standard for the financial sector and help in increasing access to financing for small and medium -sized companies across a country.
Mir Nejib UR Rehman, PBA, participated in a press conference on Wednesday, explaining that the index will be based on the market data that was collected next year. It will provide valuable visions for banks, and to enable them to make enlightened decisions on increasing lending to small and medium companies. The index will be updated every six months to provide an updated understanding of the small and medium -sized companies sector.
There are approximately 5 million small and medium -sized companies in Pakistan, employing about 80 % of the non -agricultural workforce. These companies contribute to 40 % of GDP in Pakistan and represent 25 % of the country’s exports, according to the bank’s national financial listing report at the Bank of Pakistan (NFIS) 2024-28, which was published in January 2025.
However, only 155,000 small and medium -sized companies, or about 3 % of the total, are currently receiving funding from the banking sector, and the financing of small and medium -sized companies represents only 6 % of the total private sector credit.
SBP is committed to enhancing the participation of small and medium -sized companies in the official financial system, with the aim of double the financing of small and medium companies to 1 trillion rupee by 2029. As part of this effort, SBP encourages banks to use technology to expand financing options for small and medium -sized companies.
In addition to this initiative, PBA announced that it will host its first conference ever, “The Pakistani Bank 2025 (PBS’25), on February 24-25, 2025, in Karachi. The event will focus on directing banks to increase funding for the private sector and will provide a platform for exchanging best practices International with local industry players.
Zafar Masoud, Chairman of PBA, stressed that banks will focus on four main areas to increase financing: small and medium companies, agriculture, housing, and the digital sector. He pointed out that targeting these sectors will support economic growth and help stimulate the private sector.
Atif Bajwa, Chairman of the PBS’25 Guidance Committee and CEO of Pepper Bank, highlighted the importance of the small and medium -sized companies in leading the local economy. He urged the banking sector to enhance its role in meeting financial needs and support trade and investment.
Pajoa rejected the perceptions that banks were excessively benefiting, saying that more than 50 % of their net profits are paid for taxes on the government, even though the remaining profits are comparable to other sectors in Pakistan.
