KARACHI: United Business Group (UBG) leaders have emphasized that enhanced SME lending would not only boost domestic economic activity but also strengthen Pakistan’s export base, as SMEs contribute around 25% of the country’s total exports. They laud SBP’s reforms to boost SME financing.
The reforms, combined with the recent decline in interest rates, are expected to pave the way for inclusive economic growth and large-scale employment generation.
President Zubair Tufail and Central leaders Zafar Bakhtiari, Momin Ali Malik, Hanif Gohar, Syed Mazhar Ali Nasir, Malik Khuda Bakhsh and Gulzar Firoz, have welcomed the State Bank of Pakistan’s latest initiative to revise prudential regulations for SME financing, terming it a timely and transformative step towards unlocking the true potential of Pakistan’s small and medium enterprises.
UBG leaders praised the State Bank’s comprehensive reform package aimed at removing structural lending barriers and fostering inclusive, responsible, and sustainable access to finance for SMEs — a sector that contributes nearly 40% to the national GDP and employs around 80% of the non-agricultural workforce.
Senior leaders of UBG said, “We strongly commend the State Bank for responding to a long-standing demand of the business community. This reform not only encourages credit flow to underserved SMEs, but also aligns financial policy with ground realities and economic needs.”
UBG noted that despite SMEs being the backbone of Pakistan’s economy, their access to bank credit remained dismally low at just 6%. The group expressed optimism that the revised framework which emphasizes principles based regulation, fintech partnerships, and technology driven solutions will significantly improve credit disbursement and ease financial constraints faced by millions of SMEs across the country.
Copyright Business Recorder, 2025
