Institutional backing urged for MSMEs

LCCI calls for easier finance, policy consistency as number of SME borrowers grows

Small. medium enterprise (SME) financing in Pakistan surged 46% to Rs853.94 billion in the year ending March 31, 2026, according to data from the State Bank of Pakistan (SBP), as the government marked World MSME Day on June 27.

The number of SME borrowers increased from 203,139 to 312,355 during the same period. registering growth of 53.7%, Special Assistant to the Prime Minister Haroon Akhtar Khan said in a message on the occasion.

The figures were released during a seminar organised by the Lahore Chamber of Commerce. Industry (LCCI) in collaboration with the Small and Medium Enterprises Development Authority (SMEDA) to mark World MSME Day.

LCCI President Faheemur Rehman Saigol said SMEs are the backbone of economies across the world. possess enormous potential to generate employment, reduce poverty, promote local industrialisation and accelerate economic activity in Pakistan.

He said millions of people are associated with the MSME sector directly. indirectly, making its growth synonymous with the growth of the national economy.

However, despite their immense importance, MSMEs continue to face multiple challenges, including limited access to bank financing, lack of modern technology, high energy costs, excessive cost of doing business, marketing constraints. difficulties in accessing international export markets.

Saigol stressed the need for greater institutional support, policy consistency. easier access to finance to enable MSMEs to realise their full potential.

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