ISLAMABAD (Web Desk) – The government of Pakistan is extending maximum support to Micro, Small and Medium Enterprises (MSMEs), which have taken on a significant role in steering national economic growth amid challenging economic conditions.
This was stated by Haroon Akhtar Khan, Special Assistant to the Prime Minister for Industries and Production, while addressing an interactive session organised to mark World MSME Day 2026. The session was hosted by the Small and Medium Enterprises Development Authority (SMEDA) at the Islamabad Chamber of Small Traders and Small Industries (ICSTSI) to encourage dialogue, networking and wider outreach to MSMEs for government support.
A brief documentary showcasing SMEDA’s key initiatives set the tone for nationwide activities held to mark the United Nations designated day, highlighting efforts aimed at strengthening Pakistan’s small business ecosystem.
The SAPM emphasised that MSME development remains central to the government’s economic agenda. Under the leadership of Prime Minister Muhammad Shehbaz Sharif, he said the government is working to improve access to finance, encourage business formalisation and create new opportunities for enterprise growth through capacity building and training programmes.
“Access to credit remains one of our foremost priorities, with encouraging growth in lending by banks and microfinance institutions,” Haroon Akhtar Khan said.
According to State Bank of Pakistan (SBP) data as of March 31, 2026, Pakistan’s SME financing portfolio increased to Rs. 853.94 billion, compared with Rs. 584.44 billion on March 31, 2025, reflecting growth of 46 per cent.
Similarly, the number of SME borrowers increased to 312,355 as of March 31, 2026, compared with 203,139 recorded a year earlier, showing an increase of 53.7 per cent.
He added that the government is equally committed to supporting women entrepreneurs and microenterprises, particularly those operating in underserved areas, to build a vibrant and globally competitive MSME ecosystem capable of contributing towards inclusive and sustainable economic growth.
The SAPM said collaboration with organisations including Alibaba, JICA, PIFD and microfinance institutions was aimed at creating opportunities for MSMEs by improving market access and expanding business linkages.
“The government’s aim is enduring prosperity of our MSMEs,” he said.
SMEDA initiatives
SMEDA Chief Executive Officer Nadia Jahangir Seth said World MSME Day provides an opportunity to recognise the resilience, innovation and contribution of millions of Pakistani entrepreneurs towards the national economy.
Highlighting SMEDA’s initiatives under its three-year Business Plan, she said the organisation, following a renewed vision and strategic direction set by the Ministry of Industries and Production and its Board of Directors, was focused on making MSMEs bankable and digitally equipped.
She said SMEDA was working towards promoting business formalisation through free registration facilities offered via the SME Registration Portal (SMERP), while also focusing on export readiness, inter-firm linkages and climate-related initiatives.
She highlighted key projects, including the SME Certification and International Accreditation Grant Programme and a five-year project aimed at converting banana waste into eco-friendly textile products.
In line with Prime Minister Shehbaz Sharif’s vision of inclusive economic growth, Seth said SMEDA was reaching out to women-led businesses and microenterprises to strengthen their digital and financial literacy, product development capabilities and export readiness.
She added that these initiatives were also designed to provide entrepreneurs with better market access, B2B linkages and opportunities for value chain integration.
“SMEDA remains committed to creating an enabling environment that helps enterprises become more competitive, bankable and globally connected,” she said.
Nationwide outreach
Islamabad Chamber of Small Traders and Small Industries President Awais Satti welcomed the government’s renewed focus on MSME development and appreciated the initiatives being carried out through SMEDA.
He said stronger public-private collaboration, improved access to finance and wider market opportunities were essential for unlocking the potential of Pakistan’s MSME sector.
World MSME Day is observed globally on June 27 to recognise the contribution of MSMEs towards employment generation, innovation and sustainable economic growth.
This year, SMEDA organised interactive sessions and discussions in Islamabad, Rawalpindi, Lahore, Faisalabad, Gujranwala, Gujrat, Sialkot, Multan, Sargodha, Abbottabad, Hyderabad, Dadu, Sukkur and Mirpur.
In Lahore, SMEDA, in collaboration with the Lahore Chamber of Commerce and Industry (LCCI), arranged a stakeholder engagement session. Faheem Ur Rehman Saigol, President of LCCI, attended the event as chief guest and highlighted the importance of entrepreneurship and enterprise development in strengthening Pakistan’s economy.
He appreciated the role of MSMEs in creating employment opportunities, encouraging innovation and promoting inclusive economic growth.
Muhammad Javed Afzal, Regional Chief, Central, SMEDA, highlighted the significance of World MSME Day and briefed participants about SMEDA’s mandate, services and ongoing initiatives for MSME development.
The sessions also provided a platform for participants to share recommendations aimed at improving the business environment and enhancing the competitiveness of local enterprises.