Pakistan plans to expand financing for small and medium-sized enterprises to Rs2.2 trillion by 2028, aiming to improve access to credit for businesses that contribute to employment and economic activity.
Prime Minister Shehbaz Sharif issued the direction during a meeting on the Small and Medium Enterprises Development Authority. The target would double the reported financing level of Rs1.1 trillion.
Smaller businesses often struggle to obtain bank loans because they lack sufficient collateral, formal financial records or the resources needed to meet complex application requirements.
Expanding lending could help enterprises invest in machinery, increase production and develop new markets. The impact, however, will depend on whether financing reaches businesses that have viable plans but limited access to formal credit.
The prime minister also directed officials to expand support for entrepreneurs, including the preparation of feasibility studies in local languages.
Meeting the target will require coordination between banks and relevant government bodies, alongside monitoring to ensure that increased lending produces sustainable business activity rather than an accumulation of bad loans.
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