PM’s adviser Haroon voices concern over small and medium enterprises loans

Chairing a consultative session, Mr Khan called on the regulators, including the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP), to promote small loans, leasing and insurance cover for SMEs.

The session was attended by SME representatives, business clusters, banks, SBP, and relevant government departments to address the challenges businesses face in accessing affordable and timely financing.

The meeting was informed that recently Prime Minister Shehbaz Sharif had directed an increase in the total SME financing from Rs1.1tr to Rs2.2tr by 2028.

Says banks aren’t disbursing Rs2.2tr fund despite directives

The premier directed the government to make concerted efforts to simplify lending procedures, improve coordination with business clusters, and help eligible enterprises obtain financing. The consultative session was held after complaints by various sectors that the banks were not disbursing financing to SMEs.

Mr Khan emphasised that the consultations aimed to bridge the gap between financial institutions and businesses by identifying practical obstacles and developing workable solutions.

Representatives of various SME clusters highlighted the financial constraints and procedural hurdles affecting their businesses, including difficulties in obtaining credit and accessing suitable financing to expand operations, meet working capital requirements, and capitalise on business opportunities.

The adviser highlighted that SMEs were a vital pillar of the economy, contributing significantly to GDP, exports, and non-agricultural employment. He noted that limited access to finance remained a major constraint on the growth potential of many otherwise viable businesses.

The key concerns raised by the participants were the need for the banks and the SBP to give due consideration to providing financing support to SMEs and to ensure effective follow-up and accountability in addressing them.

The banks were urged to improve assessment of viable borrowers through cash flow, documented transactions and permissible alternative collateral or security arrangements.

Published in Dawn, October 25th, 2026