SMEs an industry-wide priority

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday announced the formation of a dedicated SME Finance Task Force to expand access to credit for small and medium enterprises, declaring that “lending to SMEs can no longer remain a limited initiative of a few banks but must become an industry-wide priority.”

Addressing the second Pakistan Banking Summit 2026 (PBS’26), organised by the Pakistan Banks Association (PBA), Aurangzeb said the State Bank of Pakistan (SBP) would lead the task force, which would include representatives from the PBA, Smeda, chambers of commerce and industry, and the Ministry of Finance.

“We cannot have SMEs not getting access to finance going forward. It’s as simple as that,” the minister emphasised and called for moving beyond “lip service” and making SME financing a collective responsibility across the banking sector. The announcement came during the opening session of the summit, which brought together over 600 participants, including bankers, regulators, policymakers, and international experts for two days of dialogue on Pakistan’s financial future.

Aurangzeb underscored that the banking industry remains “absolutely critical” in Pakistan’s journey from economic stabilisation to sustainable, investment-led growth. He urged banks to significantly increase lending to priority sectors, including SMEs, exporters, agriculture, manufacturing, construction, and IT.

He revealed that a constructive meeting was held with bank CEOs the previous day in the presence of the SBP governor, during which the need for broader access to SME credit was discussed at length. He welcomed the continued scaling up of risk-sharing and partial guarantee schemes, particularly for SMEs and small farmers, to mobilise private capital. He also reaffirmed the government’s commitment to subsidised financing, especially for export-oriented sectors.

The finance minister painted an encouraging picture of economic performance in the last fiscal year. He highlighted an all-time low fiscal deficit, a debt-to-GDP ratio well below 70%, and a GDP growth hitting 3.7% on the back of a strong rebound in large-scale manufacturing.

Current account performance remained robust, supported by record remittance inflows. Aurangzeb said remittances were expected to close between $41 billion and $42 billion for the year. Foreign exchange reserves are projected to stay higher, at $18 billion, than earlier estimates, while value-added exports, particularly textiles, continue to show year-on-year growth despite pressure in the food segment.

In the capital market, company registrations crossed…