PM directs strategy to improve SMEs’ access to financing

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday directed the formulation of a comprehensive strategy to improve small and medium-sized enterprises’ access to financing while chairing a review meeting of the Small and Medium Enterprises Development Authority (Smeda) in Islamabad.

According to the Prime Minister’s Office (PMO), the prime minister asked Smeda to prepare the strategy in coordination with the State Bank of Pakistan and commercial banks. He said greater facilitation was needed in the extension of loans to SMEs in order to support an increase in the country’s exports.

The PMO said the prime minister also called for support to help SMEs expand their productive capacity. He placed particular emphasis on creating awareness and improving access to finance for farmers involved in processing agricultural produce.

Directions for banks and business support

Prime Minister Shehbaz also directed that commercial banks be encouraged to design dedicated financial products suited to the requirements of SMEs. In addition, he instructed that small and medium-sized businesses should receive assistance in preparing feasibility studies and completing other necessary stages linked to the establishment and expansion of enterprises.

The prime minister emphasised that immediate steps were needed to remove barriers affecting the sector’s growth. He also directed Smeda to support young entrepreneurs, including women entrepreneurs, in setting up small and medium-sized businesses.

Smeda briefing on ongoing initiatives

During the meeting, participants were briefed on a range of measures undertaken by Smeda to facilitate SMEs. The meeting was informed that 700 enterprises had been facilitated to take part in 16 international events during the current year as part of efforts to improve Pakistani SMEs’ access to international markets and increase exports.

Officials also informed the meeting that enterprises in 35 cities had received training on financial regulations and business development. The meeting was further briefed on other initiatives currently being implemented under Smeda.