The State Bank of Pakistan (SBP) celebrated Micro, Small, and Medium Enterprises (MSME) Day alongside the global community, highlighting the vital role these enterprises play in driving economic growth, fostering innovation, and creating jobs. This year’s theme, “MSME Finance: Catalyst for Inclusive Growth,” emphasizes the importance of financial support in unlocking the potential of SMEs.
SBP organized a seminar for the occasion, which saw attendance from Presidents and CEOs of banks and Development Finance Institutions (DFIs), senior SBP management, government officials, and trade body representatives.
In his keynote address, Deputy Governor Saleemullah stressed that SMEs are the backbone of Pakistan’s economy, employing 80 percent of the non-agricultural workforce, contributing 40 percent to GDP, and generating over 25 percent of total export earnings. In addition, he also emphasized SBP’s commitment to fostering an environment that promotes SME finance, enabling these enterprises to thrive and contribute to sustainable economic growth.
As part of its Vision 2028, SBP aims to double SME financing to Rs. 1,100 billion over the next five years, with Rs. 100 billion added to the SMEs’ outstanding portfolio by the end of June 2025. The Deputy Governor urged all banks to actively promote SME finance and exceed the Rs. 100 billion increase projected for FY 2024-25.
To further support SME finance, SBP has proposed that the government provide risk coverage to banks for their new financing to SMEs. Simultaneously, this proposal includes 20 percent first-loss coverage for Small Enterprises (SEs) and 10 percent coverage for Medium Enterprises (MEs) on fresh exposures. Moreover, the necessary allocations for FY25 have been included in the budget.
Furthermore, in his concluding remarks, the Deputy Governor called on all stakeholders to renew their commitment to creating a supportive environment where small and medium-sized enterprises can flourish, driving economic growth and innovation across the nation.
Additionally, an event at the Banking Hall of SBP raised awareness about the significant contributions of MSMEs to Pakistan’s economy. Throughout the day, commercial banks and SMEs showcased their products, drawing keen interest and praise from visitors for this collaborative initiative between the banking industry and SMEs.
