Regional and federal authorities have announced important initiatives targeting access to financial services, capacity building, and ecosystem development.
Punjab Prime Minister Maryam Nawaz Sharif has unveiled plans to stimulate the growth of SMEs in the province by introducing two financing schemes: the “Business Card” and the “Prime Minister’s Easy Business Financing Scheme”. These initiatives aim to provide financial support to small and medium business owners and encourage entrepreneurship throughout the governorate.
Under the business card scheme, medium-sized business loans ranging from Rs 1 lakh to Rs 10 lakh will be provided. For larger enterprises, the Prime Minister’s Easy Business Finance Scheme will provide loans up to Rs 3 lakh (30 lakh). Borrowers under the scheme will have five years to repay, with an initial grace period of three months after receiving the first payment.
To ensure integration of SMEs into industrial areas, the Prime Minister also directed the authorities to allocate separate spaces for small and medium industries in major cities. Moreover, preferential loans will be available for IT startups at Nawaz Sharif IT City, enabling innovative companies to flourish. However, business card use will be restricted in ten non-essential categories, including restaurants.
Meanwhile, at the federal level, the Small and Medium Enterprises Development Authority (SMEDA) and the Pakistan Banks Association (PBA) signed a memorandum of understanding to address SME financing challenges. Federal Minister of Industry and Production Rana Tanveer Hussain, who witnessed the signing, stressed the importance of the sector, noting that SMEs represent 40% of Pakistan’s GDP and 78% of non-agricultural employment.
The collaboration aims to enhance the financial literacy of SMEs, improve access to subsidized financing schemes, and promote inclusivity, especially for women entrepreneurs. The MoU outlines initiatives such as capacity building, sector-specific research, and advocacy for SME-friendly policies.
While SMEs contribute significantly to the Pakistani economy, their growth is hampered by limited access to formal financing. Federal Secretary Saif Anjum highlighted the lack of financial support in deprived areas as a crucial impediment. However, SMEDA CEO Sokrat Aman Rana expressed optimism, noting that the MoU represents a “positive start” in closing these gaps. PBA Chairman Zafar Masood echoed this sentiment, stressing that financing SMEs remains a priority for the banking sector.