Govt vows to empower small businesses, accelerate growth

PM aide says reforms will help build innovation-driven, globally competitive economy

Special Assistant to the Prime Minister on Industries. Production Haroon Akhtar Khan has reaffirmed the government's commitment to strengthening the micro, small and medium enterprises' sector, describing it as the backbone of the national economy and a central pillar of the economic transformation agenda.

Addressing the World Micro, Small. Medium Enterprises (MSME) Day 2026 ceremony, the PM aide remarked "every great economy is built upon the courage, resilience and innovation of entrepreneurs". He emphasised that Pakistan's approximately 7.14 million MSMEs constituted the country's largest productive force, contributing nearly 40% of gross domestic product (GDP), 30% of exports. providing employment to more than 80% of the non-agricultural workforce.

Khan pointed out that Pakistan was pursuing an ambitious economic reform agenda anchored in industrialisation, innovation, export-led growth. private-sector development. MSME development occupies a central place in this national vision aimed at building an economy that is export-oriented, innovation-driven, globally competitive. inclusive.

The special assistant highlighted that the future of global competitiveness would be shaped by artificial intelligence, digital transformation. innovation, stressing that nations embracing technological advancement and entrepreneurship would emerge as future economic leaders. He said the government was creating an enabling business environment that would reward the enterprise, support innovation. provide equal opportunities to entrepreneurs across all regions of the country.

Sharing the progress on access to finance. Khan stated that according to the State Bank of Pakistan, the SME financing increased from Rs584 billion to nearly Rs854 billion as of March 31, 2026, reflecting an annual growth of 46%. Similarly, the number of SME borrowers rose 53%, exceeding 312,000 businesses. He described the achievements as evidence of growing confidence in Pakistan's entrepreneurial ecosystem. He announced that the government had established a dedicated Rs30 billion SME Development Fund to support innovation. transformational initiatives aimed at enhancing enterprise competitiveness, expanding exports and accelerating sustainable economic growth.

Highlighting the pivotal role of the Small. Medium Enterprises Development Authority (Smeda), the special assistant said the organisation was implementing a three-year business plan focused on improving access to finance, promoting business formalisation, facilitating international certifications, strengthening export readiness, accelerating digital transformation and integrating Pakistani enterprises into regional and global value chains. Khan underscored the government's commitment to women entrepreneurship, stating that women were making remarkable contributions to Pakistan's economy by creating businesses, generating employment. fostering innovation. He noted that Pakistan's first-ever National Women Entrepreneurship Policy. Action Plan, developed by Smeda, was expected to benefit more than 3.2 million women entrepreneurs nationwide through improved access to finance, technology, markets and business development services.

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