BAD LOANS: Non-performing loans (NPLs) have change into a rising concern, additional complicating the banking sector’s efforts to increase credit score. photograph: file
ISLAMABAD:
An quantity of Rs221 billion has been disbursed Below the Prime Minister’s Youth Enterprise & Agriculture Mortgage Scheme whereas the banking sector has offered total SME financing of Rs882.4 billion to 302,922 debtors.
The fifteenth assembly of the Nationwide Coordination Committee (NCC) on Small and Medium Enterprises (SME) Growth was held below the chairmanship of Particular Assistant to Prime Minister on Industries and Manufacturing Haroon Akhtar Khan.
The assembly was attended by Ministry of Industries and Manufacturing Secretary Saif Anjum, the Small and Medium Enterprises Growth Authority (Smeda) CEO, representatives of provincial ministries and officers from the banking sector.
As of December 31, 2025, the overall excellent SME financing stood at Rs882 billion, reflecting a 36% year-on-year improve, whereas the variety of SMEs facilitated reached round 303,000, marking a 65% YoY progress.
Below the SAAF Scheme, Rs60 billion in clear lending was offered, benefiting 12,500 SMEs. Equally, below the Prime Minister’s Youth Enterprise and Agriculture Mortgage Scheme, a financing of Rs221 billion was disbursed, facilitating 461,795 SMEs and beneficiaries.
The primary agenda merchandise within the assembly targeted on revising the definition of SMEs by enhancing the annual gross sales turnover threshold. It was proposed that micro enterprises be outlined as companies with annual gross sales as much as Rs30 million, small enterprises from greater than Rs30 million to Rs400 million and medium enterprises from greater than Rs400 million to Rs2,000 million.
Haroon Akhtar acknowledged that revising the definition and scope of SMEs was the necessity of the hour and emphasised that federal and provincial establishments would undertake the up to date framework.
He added that SMEs have been the spine of the financial system and the federal government was endeavor complete measures to advertise and strengthen the sector. He famous that there was full consensus between the federation and provinces on the revision of SME definition and scope.
The second key agenda merchandise was the implementation of the Nationwide SME Coverage 2021. The committee emphasised that efficient implementation of the coverage throughout Pakistan would empower MSMEs and improve their contribution to financial progress. Smeda and provincial authorities have been directed to make sure common follow-up and progress reporting.
Highlighting entry to finance as a significant driver for SME progress, Haroon Akhtar acknowledged that each one banks have been on board to facilitate credit score entry for SMEs from Gilgit-Baltistan to Azad Jammu & Kashmir and Balochistan. He added that the economic coverage additionally targeted on ease of entry to credit score and tax reduction measures to additional assist the sector.
The particular assistant termed the Talent Growth Bonds and synthetic intelligence coaching initiatives for SMEs encouraging steps. He described Smeda’s efforts to equip SMEs with fashionable expertise and AI-based coaching as a major development in the direction of enhancing competitiveness and innovation within the sector.
