ISLAMABAD:
Adviser to Prime Minister for Industries and Production Haroon Akhtar Khan has called on banks and the State Bank of Pakistan (SBP) to give due consideration to the financing challenges faced by SME clusters and take effective measures to address them as limited access to credit remains a major constraint on growth of many viable businesses.
The adviser held a consultative session with representatives of small and medium enterprises (SMEs), business clusters, banks, the State Bank and relevant government departments to address the challenges faced by businesses in accessing affordable and timely financing.
The representatives of various SME clusters highlighted the funding constraints and procedural hurdles affecting their businesses, including difficulties in obtaining credit and gaining access to suitable financing facilities to expand operations, meet working capital requirements and capitalise on emerging opportunities.
Khan stated that Prime Minister Shehbaz Sharif had directed that financing for SMEs be doubled, underscoring the government’s commitment to expanding access to credit and strengthening the role of SMEs in the national economy.
He stressed that banks must make concerted efforts to simplify lending procedures, improve coordination with business clusters and facilitate eligible enterprises in getting required funds. “The benefits of financial support must reach businesses at the grassroots level and translate into tangible improvements in production, investment and employment.”
The adviser highlighted that SMEs were a vital pillar of Pakistan’s economy, contributing significantly to the GDP, exports and non-agricultural employment. He observed that limited access to credit was a major constraint on the growth potential of many businesses.
Khan mentioned that the objective of consultations was to bridge the gap between financial institutions and businesses by identifying practical obstacles and developing workable solutions. He called for stronger coordination among banks, the State Bank, government departments and SME representatives to ensure that financing facilities meet the actual needs of business clusters.
