Government reiterates push to strengthen MSMEs and widen access to finance

ISLAMABAD: Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Saturday said the government was committed to reinforcing the micro, small and medium enterprises sector, describing it as a key driver of the economy and an important part of its broader economic transformation agenda.

Speaking at the World Micro, Small and Medium Enterprises Day 2026 ceremony, Khan said Pakistan’s MSMEs represented the country’s largest productive segment. He said the country had around 7.14 million MSMEs, which account for nearly 40% of gross domestic product, 30% of exports and provide jobs to more than 80% of the non-agricultural workforce.

During his address, the PM aide linked the sector’s development to the government’s wider reform programme, which he said was based on industrialisation, innovation, export-led expansion and private-sector growth. He said MSMEs held a central place in this national strategy aimed at building an economy that is export-oriented, innovation-led, globally competitive and inclusive.

Khan said future competitiveness would be shaped by artificial intelligence, digital change and innovation, adding that countries that adopt technology and encourage entrepreneurship would be better placed to lead economically. He said the government was working to create a business climate that rewards enterprise, supports innovation and offers equal opportunities to entrepreneurs across the country.

Referring to financing trends, Khan said State Bank of Pakistan data showed SME financing had increased from Rs584 billion to nearly Rs854 billion by March 31, 2026, marking annual growth of 46%. He added that the number of SME borrowers had risen by 53% to more than 312,000 businesses, which he described as a sign of increasing confidence in Pakistan’s entrepreneurial environment.

He also announced that the government had set up a dedicated Rs30 billion SME Development Fund to back innovation and transformation initiatives intended to improve enterprise competitiveness, raise exports and support sustainable economic growth.

Smeda plan and women entrepreneurship

Khan said the Small and Medium Enterprises Development Authority was carrying out a three-year business plan focused on improving access to finance, encouraging business formalisation, helping firms obtain international certifications, strengthening export preparedness, speeding up digital transformation and connecting Pakistani enterprises with regional and global value chains.

He also highlighted women’s entrepreneurship, saying women were contributing significantly to the economy through business creation, employment generation and innovation. According to Khan, Pakistan’s first National Women Entrepreneurship Policy and Action Plan, prepared by Smeda, is expected to benefit more than 3.2 million women entrepreneurs across the country through better access to finance, technology, markets and business development services.

At the ceremony, Khan also said:

every great economy is built upon the courage, resilience and innovation of entrepreneurs