Pakistan doubles SME loan target to Rs2.2 trillion by 2028

Prime Minister Shehbaz Sharif has directed the doubling of Pakistan’s small and medium enterprise (SME) financing target to Rs2.2 trillion by 2028, up from the previous target of Rs1.1 trillion. During a meeting regarding the Small and Medium Enterprises Development Authority (SMEDA), the Prime Minister emphasized that SMEs are the backbone of the economy and highlighted the need to empower entrepreneurs, particularly in underdeveloped regions, to reduce migration to large cities.

To support this initiative, SMEDA will act as a central platform to connect entrepreneurs with banking facilities, training, and guidance. The authority is also tasked with creating sector-specific feasibility studies in local languages and establishing an AI-based helpline. Additionally, a memorandum of understanding has been signed with Alibaba to provide training to 10,000 SMEs over the next two years.

In a separate economic reform effort, the Federal Board of Revenue (FBR) aims to have tax monitoring systems fully operational across 18 industrial sectors by December 31, 2026. Monitoring equipment has already been installed in the sugar, cement, tobacco, tiles, and fertilizer sectors. Work is currently underway to expand these systems into the textile, packaged water, juice, and milk industries to improve revenue collection and curb tax evasion.