Pakistan Furniture Council Urges Government, SBP to Expand Financing for Furniture Industry

By Dr Ansab Ali | Lahore, Pakistan
The Pakistan Furniture Council (PFC) has called on the federal government and the State Bank of Pakistan to boost financing for the furniture and allied wood-based industries, emphasizing the sector’s potential to drive exports, employment, and regional economic growth.
Speaking at a policy consultation, PFC Director Shahbaz Aslam highlighted that limited access to affordable credit has constrained investment, modernization, and expansion, particularly for small and medium enterprises (SMEs), which constitute the backbone of the industry.
Aslam proposed that SME financing be increased to at least 20 percent of total credit and that targeted credit guarantee schemes be extended to furniture manufacturers and exporters, following models successfully implemented by the EXIM Bank of Pakistan. He also recommended establishing sector-specific funds, similar to the KP Industrial and Youth Empowerment Fund, to provide low-cost financing for equipment upgrades, technology adoption, and working capital needs.
The PFC director emphasized that a gradual reduction in the policy rate could further incentivize investment and help domestic manufacturers remain competitive in international markets. He also stressed the importance of financial literacy programs to educate business owners about available financing instruments, including Shariah-compliant solutions under Islamic banking frameworks.
Aslam called for streamlined lending procedures and simplified documentation requirements to facilitate easier access to funds for furniture industry SMEs. He noted that coordinated efforts between the PFC, the central bank, and commercial banks could expand production capacity, increase exports, and create employment opportunities across multiple provinces.
Concluding his remarks, Aslam said that with adequate support, the furniture sector could become a key driver of Pakistan’s economic growth, export promotion, and sustainable industrial development, urging policymakers to allocate dedicated financial resources to enable manufacturers to compete on a global scale.