Govt reaffirms strong support for MSMEs as SME financing jumps 46%

The federal government has reaffirmed its commitment to strengthening Micro, Small, and Medium Enterprises (MSMEs), describing the sector as a key driver of economic growth, employment, and innovation, 24NewsHD TV reported on Saturday. 

The commitment was expressed by Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan while addressing an interactive session held to mark World MSME Day 2026.

The event was organized by the Small and Medium Enterprises Development Authority (SMEDA) at the Islamabad Chamber of Small Traders and Small Industries (ICSTSI) to promote dialogue and expand government outreach to MSMEs.

In his keynote address, Haroon Akhtar Khan said MSME development remains at the heart of the government's economic agenda under the leadership of Prime Minister Shehbaz Sharif.

He said the government is focusing on improving access to finance, encouraging business formalization, and creating new opportunities for enterprise growth through training and capacity-building initiatives.

Highlighting the sector's financial progress, he said Pakistan's SME financing portfolio increased by 46 percent to Rs853.94 billion as of March 31, 2026, compared to Rs584.44 billion a year earlier.

He added that the number of SME borrowers also rose by 53.7 percent, reaching 312,355, up from 203,139 during the same period last year.

The SAPM said the government is also prioritizing support for women entrepreneurs and microenterprises, particularly in underserved regions, to build an inclusive, competitive, and sustainable MSME ecosystem.

He noted that partnerships with organizations such as Alibaba, JICA, the Pakistan Institute of Fashion and Design (PIFD), and microfinance institutions are helping small businesses gain greater access to domestic and international markets.

Speaking on the occasion, SMEDA Chief Executive Officer Nadia Jahangir Seth said World MSME Day celebrates the resilience and contribution of millions of Pakistani entrepreneurs to the national economy.

She highlighted SMEDA's three-year business plan, which focuses on making MSMEs more bankable and digitally equipped, promoting business formalization through the SME Registration Portal (SMERP), strengthening export readiness, encouraging business linkages, and advancing climate-friendly initiatives.