SME financing rises 46pc to Rs853.94bn as calls grow for stronger support

ISLAMABAD: Financing to small and medium enterprises in Pakistan climbed 46% to Rs853.94 billion in the year ended March 31, 2026, according to State Bank of Pakistan data shared as the country observed World MSME Day on June 27.

The figures were presented during a seminar held by the Lahore Chamber of Commerce and Industry (LCCI) in collaboration with the Small and Medium Enterprises Development Authority (SMEDA). In a message issued on the occasion, Special Assistant to the Prime Minister Haroon Akhtar Khan said the number of SME borrowers rose from 203,139 to 312,355 over the same period, reflecting an increase of 53.7%.

Seminar highlights role of MSMEs

Speaking at the event, LCCI President Faheemur Rehman Saigol said micro, small and medium enterprises form the backbone of economies around the world and carry significant capacity to create jobs, reduce poverty, support local industrialisation and speed up economic activity in Pakistan.

He said the MSME sector is linked directly and indirectly with the livelihoods of millions of people, adding that the segment’s expansion is closely tied to the country’s overall economic progress.

Challenges facing the sector

Saigol said that despite the sector’s importance, MSMEs continue to face a range of obstacles. These include restricted access to bank credit, limited availability of modern technology, elevated energy costs, a high cost of doing business, marketing difficulties and barriers in reaching international export markets.

He called for stronger institutional backing, continuity in policymaking and simpler access to finance so that MSMEs can unlock their full capacity.