Qudsia Bano

Experts have stressed the critical need for enhanced support to small and medium enterprises (SMEs) as part of the State Bank of Pakistan’s (SBP) priority sector initiatives in order to strengthen Pakistan’s economic outlook. This urgent call followed the first Steering Committee Meeting chaired by SBP Governor Jameel Ahmed, which focused on amplifying banking sector assistance for SMEs, agriculture and the digital and technology sectors. SMEs are widely recognised as vital contributors to Pakistan's GDP and employment sector, yet they often encounter obstacles in securing essential resources and financing necessary for expansion and sustainability. “Supporting SMEs is crucial for fostering economic resilience and inclusive growth,” remarked Dr Farhan Khan, an economic analyst at the Pakistan Economic Forum. “These enterprises drive local economic development and play a pivotal role in job creation, innovation, and diversification,” he said.

The Steering Committee, comprising prominent figures from SBP, the Ministry of Finance, and the Pakistan Banks' Association (PBA), underscored the strategic importance of creating an enabling environment conducive to SME growth. The committee’s deliberations emphasised the urgent need for targeted policies and initiatives that facilitate easier access to credit, technology adoption, and market integration for SMEs. Dr Nida Rehman, a senior economist at the Karachi Institute of Economics and Technology, said that enhancing support for SMEs through tailored financial products and regulatory frameworks is imperative. “By addressing their financing challenges and promoting innovation, we can unlock SMEs' full potential as economic dynamism and job creation drivers.” Governor Jameel Ahmed affirmed the SBP's commitment to fostering a resilient economic ecosystem that empowers SMEs and other priority sectors to thrive.

He emphasised the importance of collaborative efforts between policymakers, financial institutions, and industry stakeholders to achieve sustainable economic growth and prosperity. “SMEs require a multifaceted approach to thrive. This includes financial support and access to training, mentorship, and technological resources. A well-rounded support system will enable these enterprises to compete effectively in domestic and international markets,” said Nida. As Pakistan charts its path toward economic recovery and sustainable development, the concerted focus on strengthening support for SMEs under SBP's priority sector initiatives is poised to play a pivotal role in revitalising the economy, fostering entrepreneurship, and ensuring inclusive growth across the country.

Credit: INP-WealthPk