FPCCI Businessmen Panel Urges Central Bank for SME Support

The Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel has urged the central bank to reassess its credit policies to better support small and medium enterprises (SMEs). Currently, large industries dominate government loan facilities, leaving limited financing options for SMEs, which contribute significantly to Pakistan's GDP.

Former FPCCI President Mian Anjum Nisar emphasized the vital role of SMEs in driving economic development, highlighting the challenges they face in accessing credit. Despite efforts by the State Bank of Pakistan to increase SME credit share, the sector continues to struggle due to a lack of targeted financing schemes.

Nisar called for a comprehensive SME policy focusing on addressing sector-specific issues and encouraging financial institutions to support SMEs. He proposed the establishment of a credit guarantee company to facilitate risk-sharing for SMEs and stressed the importance of collaboration among stakeholders to achieve policy objectives.

With over five million SMEs in Pakistan, accounting for 90% of businesses and contributing significantly to GDP and export earnings, the sector plays a crucial role in employment generation and economic growth. However, financial constraints and limited access to financing have led to declining sales and profitability, posing serious challenges for SMEs.

The current economic landscape underscores the urgent need for targeted financial support to bolster Pakistan's SME sector. By implementing tailored policies, enhancing access to credit, and fostering collaboration among stakeholders, the government can empower SMEs to drive inclusive growth and contribute more effectively to the national economy.