Pakistan eager to learn from successful SME models in developing countries: FinMin
Business
Says financial reforms are underway to strengthen exports, ensure better inclusion of women, youth
SEVILLE (Dunya News) - Finance Minister Muhammad Aurangzeb has said that Pakistan is keen to learn from the successful small and medium enterprise (SME) models of other developing countries to boost its economic growth.
Speaking at the International Business Forum in Spain, the finance minister highlighted that SMEs made up 40 percent of Pakistan’s economy and contributed 25 percent to the country’s exports.
He reaffirmed the government’s commitment to support small businesses and improve the financial system to help them grow.
“SMEs are doing the heavy lifting in Pakistan’s non-agricultural sector, providing nearly 78 percent of the jobs,” said Aurangzeb. “Yet, they receive only a small slice of private sector credit.”
He added that the government aimed to increase the share of SME lending in private sector credit to 17 percent by 2028, up from the current levels.
The finance minister noted that the State Bank of Pakistan was actively encouraging commercial banks to step up SME financing.
He said financial reforms were underway to strengthen exports and ensure better inclusion of women and youth in the economy.
Read also: FinMin Aurangzeb pledges export-led growth for sustainable development
Talking about youth empowerment, Aurangzeb shared that under the Youth Business and Agri Loan Scheme, the government has provided billions in credit guarantees.
He further revealed that the government was willing to shoulder up to 50 percent of the loan burden for small businesses.
He also mentioned that the National SME Policy 2021 was being restructured to make it more effective, while SMEDA (Small and Medium Enterprises Development Authority) was being strengthened to help improve market access and training for entrepreneurs.
“Pakistan’s SMEs are full of potential, and we are determined to give them the tools they need to thrive,” Aurangzeb concluded.
