SMEs Key to Economic Growth, Says LCCI President at Finance and Banking Expo

By Farzana Chaudhry
Lahore, Pakistan
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) organized the SME Finance and Banking Expo on Thursday to provide small and medium enterprises (SMEs) with direct access to banking facilities, financing schemes, and financial products. The day-long event saw participation from almost all major commercial banks, Islamic banks, and financial institutions in Pakistan.
Banks set up stalls at the expo where LCCI members obtained detailed information on SME-focused financing products, refinance schemes, credit facilities, Islamic finance models, and digital banking solutions.
The expo was inaugurated by LCCI President Faheem Ur Rehman Saigol, Executive Director of the State Bank of Pakistan Syed Basit Ali, Chief Manager State Bank Tariq Riaz, LCCI Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, and SAARC Chamber Vice President Mian Anjum Nisar. Other attendees included Convener SME Banking Expo Syed Salman Ali, CEO EXIM Bank Shahbaz Syed, members of the LCCI Executive Committee, senior bank officials, business leaders, and women entrepreneurs.
Addressing the ceremony, LCCI President Faheem Ur Rehman Saigol emphasized that SMEs are the backbone of sustainable economic growth. He said Pakistan could compete with regional economies only by promoting the SME sector, pointing to countries like China, Vietnam, Bangladesh, Japan, and Taiwan, which achieved growth through SMEs.
He highlighted that private sector financing in Pakistan is very low at around 6.5% of GDP, with only 295,000 SME borrowers and outstanding SME financing of PKR 686 billion—far below the sector’s potential. He urged banks and the State Bank to focus on business potential and cash flow rather than strict collateral requirements, and to expand collateral-free or low-collateral financing schemes.
The LCCI President also stressed special support for women-owned businesses, noting that women make up more than half of the population and have strong economic potential but face difficulties accessing finance. He called for special desks, simplified procedures, and guidance-based financing programs for women entrepreneurs.
Executive Director State Bank Syed Basit Ali said the SME sector is a priority for the government and the central bank. He noted that new principle-based prudential regulations are being introduced to facilitate banks in SME financing and that efforts are underway to shift lending from collateral-based to cash-flow and business-model-based approaches. He also praised women entrepreneurs and said the “Banking on Equality” policy has achieved its targets, with “Banking on Equality Vision 2.0” now in progress.
Chief Manager State Bank Tariq Riaz praised LCCI for organizing the expo and stressed the role of SMEs in employment generation and economic stability. He urged banks to provide personalized advisory support to SMEs.
SAARC Chamber Vice President Mian Anjum Nisar highlighted challenges such as high interest rates, expensive energy, complex taxation, and barriers in digital payments. He called on the State Bank to take concrete steps to provide real relief to SMEs and women entrepreneurs.
The expo served as a bridge between banks and businesses, creating awareness about financing products and empowering SMEs to leverage financial opportunities for growth.