The government has directed commercial banks to make it easier for small and medium-sized businesses to get loans.
The move is expected to improve access to bank financing for small businesses across Pakistan.
The issue was discussed during a meeting chaired by Finance Minister Muhammad Aurangzeb.
The meeting reviewed the current loan system for small and medium enterprises (SMEs) and discussed ways to bring more businesses into the banking system.
The finance minister asked commercial banks, microfinance banks and other financial institutions to increase lending to small businesses.
He also stressed that businesses linked to exports should receive special attention.
How will the SME Connect portal help businesses?
The meeting also reviewed the newly launched SME Connect portal. It allows small businesses to apply for loans directly and contact banks through one platform.
Aurangzeb welcomed the early response to the portal. He said thousands of people had shown interest within the first few days of its launch.
He also directed officials to improve the portal and make the application process easier. He stressed the need to make better use of the funds set aside for SME loans.
The finance minister also called for stronger coordination between banks and the Small and Medium Enterprises Development Authority (SMEDA).
He asked the relevant ministries to remove rules and other hurdles that make it difficult for small businesses to get loans.
The government wants to support small businesses by improving access to finance.
It also hopes the move will encourage investment, increase exports and create more business opportunities across the country.
Rs50 million interest-free loans for pink salt value addition
Punjab Chief Minister (CM) Maryam Nawaz announced interest-free loans of up to Rs50 million for pink salt value addition recently.
She said that better processing of the salt could help increase the country’s foreign exchange earnings.
How will the loans be provided?
The loans will be given for a period of five years. Borrowers will also get a three-month grace period. They will not have to make any payments during the first three months.
