ISLAMABAD: The government has decided to facilitate Small and Medium Enterprises (SMEs) especially resolving their lending and financial problems by providing them easy credit. In this connection Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, chaired a high-level meeting focusing on expanding access to credit and strengthening supply chain finance mechanisms across the country. During the meeting, the CashNow Supply Chain Finance Think Tank delivered a detailed presentation on the current state of SME financing in Pakistan. The presentation highlighted key challenges faced by SMEs in accessing formal financing and proposed strategic measures to enhance credit availability and financial inclusion. The meeting was informed that in Pakistan some five million SMEs are working but majority of the operators are not ready to register themselves with regulatory bodies and tax authorities, fearing after registration they may face harassment consequently they are also not applying for banking loans, moreover banking sector too remain hesitant in supplying credits to SMEs. READ MORE: Over 400 SMEs take part in Mera Brand Pakistan Expo Now the government wants to extend credit to the sector as the SMEs in other countries are playing a critical role economic growth. The SMEs credit is less than 2 percent of GDP in Pakistan as compared with 18 percent in other emerging markets. The think tank noted that, compared to other emerging economies in the region, SME financing in Pakistan remains significantly low, underscoring the urgent need for structural reforms and innovative financial solutions. Addressing the meeting, SAPM Haroon Akhtar Khan stated that the government is actively working to expand access to credit and financing for businesses. He emphasised that millions of SMEs are operating across Pakistan and that supply chain finance has become a critical necessity for their sustainability and growth. He further observed that a majority of SMEs operate in the informal sector and often perceive formal financing as a hurdle rather than an opportunity. “Improved financing and lending facilities will empower SMEs, promote entrepreneurship, and accelerate business growth,” he said. Highlighting the importance of inclusive economic development, the SAPM stressed that financing for the agricultural sector and farmers is equally vital for overall economic growth and stability. Haroon Akhtar Khan also emphasised that banks must play a key role in extending loans to SMEs without unnecessary regulatory barriers, ensuring a more business-friendly and supportive financial environment. To ensure practical implementation, Haroon directed the Smeda to collaborate with CashNow in developing a comprehensive business plan for SME financing and supply chain support. He further instructed Smeda to ensure the provision of financing and lending support mechanisms for all SMEs across the country. The meeting concluded with a reaffirmation of the government’s commitment to strengthening SME financing as a cornerstone of Pakistan’s economic growth and industrial development. Copyright Business Recorder, 2026