Says Rs2 trillion SME financing target to empower businesses, create jobs

By Farzana chaudhry Lahore Pakistan

LAHORE: President Lahore Chamber of Commerce & Industry (LCCI) Ali Hussam Asghar has appreciated Prime Minister Muhammad Shehbaz Sharif and the federal government for setting a target to increase SME financing to Rs2 trillion by June 2028, describing the initiative as a significant step towards empowering small and medium-sized enterprises, promoting investment, generating employment and strengthening Pakistan’s economy.

Ali Hussam Asghar said the Prime Minister’s focus on improving access to finance for SMEs reflected the government’s commitment to supporting the business community and creating an enabling environment for entrepreneurship, investment and economic activity.

He said SMEs were the backbone of Pakistan’s economy and had significant potential to generate employment, promote entrepreneurship, expand industrial and commercial activity and contribute to exports. Improved access to affordable and timely financing, he added, would enable SMEs to expand their businesses, modernize operations, adopt new technologies and enhance productivity.

The LCCI President appreciated the government’s target of Rs2 trillion in SME financing and 775,000 potential borrowers by June 2028, saying the initiative could broaden financial inclusion and bring more businesses into the formal financial system.

He also appreciated Federal Minister for Information and Broadcasting Attaullah Tarar for effectively communicating government initiatives aimed at supporting economic activity and strengthening confidence among the business community. He said effective communication of economic policies and business-support measures was essential to ensure that entrepreneurs remained aware of available opportunities and financing facilities.

Ali Hussam Asghar said the reported increase in outstanding SME financing from Rs1.114 trillion in June 2026 to more than Rs1.137 trillion by September 2026, along with an increase in SME borrowers to around 350,862, was encouraging. He stressed that the momentum should be sustained through practical and business-friendly measures.

He said achieving the financing target would require strong coordination among the government, State Bank of Pakistan, commercial banks, microfinance institutions, SMEDA and the private sector. He emphasized the need to simplify financing procedures, improve SME bankability, enhance financial literacy and expand the use of digital platforms.

The LCCI President said many SMEs had considerable growth potential but faced difficulties in accessing formal credit due to documentation requirements, limited financial literacy and procedural barriers. These challenges, he added, should be addressed through coordinated policy measures and greater engagement with the business community.

He urged financial institutions to develop flexible and practical financing products tailored to the needs of SMEs, particularly small businesses and startups that often struggle to meet conventional lending requirements.

Ali Hussam Asghar also welcomed the government’s broader initiatives to improve access to finance for agriculture and housing, saying increased financing for productive sectors could generate a multiplier effect across the economy.

He said enhanced agricultural financing could support farmers, improve productivity and strengthen the agricultural value chain, while expanded housing finance could stimulate construction activity and create employment across numerous allied industries.

The LCCI President emphasized that the objective should not merely be to increase the availability of funds but to establish a sustainable and inclusive financial ecosystem in which SMEs and other underserved sectors could access financing on affordable and practical terms.

He reiterated that the business community was ready to work with the government and financial institutions to make the SME financing initiative successful. Chambers of commerce, he added, could play an important role in identifying genuine financing needs, creating awareness among businesses and facilitating closer coordination between SMEs and financial institutions.

Ali Hussam Asghar expressed confidence that the SME financing initiative, if implemented effectively, would help unlock the potential of Pakistan’s small and medium-sized businesses, encourage investment, generate employment and contribute to sustainable economic growth.

He appreciated Prime Minister Muhammad Shehbaz Sharif for placing SME development and access to finance among the government’s priorities and expressed hope that the initiative would pave the way for a stronger, more competitive and financially inclusive SME sector in Pakistan.