The federal government has directed commercial banks and financial institutions to make loans easier to obtain for small and medium-sized enterprises (SMEs) across Pakistan.
Finance Minister Muhammad Aurangzeb issued the instructions while chairing a meeting to review lending facilities for SMEs.
The meeting discussed ways to increase business financing and bring more small enterprises into the formal banking system.
The finance minister instructed commercial banks, microfinance banks and other financial institutions to increase lending to SMEs, during the meeting.
He stressed that businesses involved in exports should receive special attention because of their role in earning foreign exchange and supporting the economy.
The recently launched SME Connect portal, which allows small business owners to apply for financing and contact banks directly was also reviewed.
Aurangzeb welcomed the initial response to the platform, saying thousands of applicants had shown interest within days of its launch.
He directed officials to improve the portal and make the loan application process simpler for business owners.
Government plans to remove financing barriers
Aurangzeb called for stronger coordination between banks and the Small and Medium Enterprises Development Authority (SMEDA).
He said better cooperation could help businesses understand financing options and connect with suitable financial institutions.
The finance minister also instructed relevant ministries to remove regulatory barriers that make it difficult for SMEs to obtain loans.
These measures will reduce paperwork, improve access to banking services and encourage more businesses to seek formal financing.
The government believes SME financing will encourage private investment and support businesses seeking to enter international markets.
The initiative also aims to strengthen Pakistan’s export sector by helping smaller companies expand their operations.
