PM directs banks to ease loans for SMEs, women entrepreneurs

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed commercial banks to take steps to improve access to easier financing for women entrepreneurs and small and medium enterprises (SMEs), while also helping them export their products.

The direction came during a review meeting chaired by the prime minister on government measures aimed at supporting the growth of the SME sector.

During the meeting, the State Bank of Pakistan governor briefed participants on lending trends and said private sector lending stood at Rs1.1 trillion in the last fiscal year.

He further informed the meeting that in the first three quarters of the current fiscal year, the loan amount had already exceeded the target of Rs904 billion.

According to the briefing, the current year’s lending figures also included a 28 per cent increase in loans extended to SMEs.

Focus on access to finance

The prime minister’s instructions were centered on expanding financing opportunities for segments that often face greater difficulty in obtaining bank credit, particularly women-led businesses and SMEs.

He asked commercial banks to ensure that these businesses are able to secure easy loans and receive support in taking their products to export markets.

The meeting reviewed the government’s ongoing measures for the uplift of SMEs, with the discussion focusing on credit availability and support for business expansion.

SBP briefing on lending performance

The State Bank governor’s briefing highlighted broader lending activity in the economy as well as the pace of financing during the current fiscal year.

Officials were told that private sector lending had reached Rs1.1 trillion in the previous fiscal year, while lending in the first three quarters of the ongoing year had already crossed the target set at Rs904 billion.

The meeting was also informed that loans to SMEs had registered a 28 per cent increase, indicating higher financing flows to the sector during the period under review.

The review session was held as part of the government’s efforts to assess measures intended to strengthen SMEs, which are seen as an important part of economic activity and business development.