State Bank of Pakistan Boosts SME Finance

The State Bank of Pakistan recently marked Micro, Small, and Medium Enterprises (MSME) Day with a special focus on recognizing the vital role these enterprises play in driving economic growth, fostering innovation, and creating employment opportunities. The event included an MSME seminar titled 'MSME Finance: Catalyst for Inclusive Growth', which brought together industry leaders, government officials, and trade body representatives to discuss the significance of supporting small and medium-sized businesses.

Deputy Governor Saleemullah emphasized the importance of SMEs in the economy, highlighting that they employ 80% of the non-agricultural workforce, contribute 40% to GDP, and generate over 25% of total export earnings. He outlined the State Bank of Pakistan's commitment to enhancing the environment for SME finance, with a target to double SME financing to Rs 1,100 billion by 2028.

To further bolster SME finance, the State Bank of Pakistan proposed a risk coverage scheme for banks offering fresh financing to SMEs, with the government allocating funds for this initiative in the FY25 budget. Deputy Governor Saleemullah called for collaboration among all stakeholders to create a supportive ecosystem where small and medium-sized enterprises can prosper, thereby driving economic growth and fostering innovation.

As part of the celebrations, an awareness event was organized at the SBP Banking Hall, showcasing products from commercial banks and SMEs. The initiative received positive feedback from visitors, underscoring the significant contributions of MSMEs to the country's economy.

The State Bank of Pakistan's commemoration of MSME Day and the focus on enhancing SME finance underscore the critical role that small and medium-sized enterprises play in Pakistan's economic landscape. By fostering an environment conducive to SME growth and innovation, the SBP aims to drive inclusive economic development and create more opportunities for businesses to thrive.