By Commerce Reporter
LAHORE: President Lahore Chamber of Commerce & Industry (LCCI) Ali Hussam Asghar has appreciated Prime Minister Muhammad Shehbaz Sharif and the federal government for setting an ambitious target to increase SME financing to Rs2 trillion by June 2028, terming the initiative a significant step towards empowering small and medium-sized enterprises, promoting investment, generating employment and strengthening Pakistan’s economy.
Ali Hussam Asghar said that the Prime Minister’s focus on enhancing access to finance for SMEs reflected the government’s commitment to supporting the business community and creating an enabling environment for entrepreneurship, investment and economic activity.
The LCCI President said that SMEs constitute the backbone of Pakistan’s economy and have enormous potential to generate employment, promote entrepreneurship, expand industrial and commercial activity and contribute to exports. Improved access to affordable and timely financing, he added, would enable SMEs to expand their businesses, modernize operations, adopt new technologies and enhance productivity.
He appreciated the government’s decision to target Rs2 trillion in SME financing and 775,000 potential borrowers by June 2028, saying that the initiative could significantly broaden financial inclusion and bring a larger number of businesses into the formal financial system.
Ali Hussam Asghar also appreciated Federal Minister for Information and Broadcasting Attaullah Tarar for effectively highlighting and communicating government initiatives aimed at supporting economic activity and strengthening confidence among the business community. He said effective communication of economic policies and business-support measures was important for ensuring that entrepreneurs and businesses remained aware of available opportunities and financing facilities.
The LCCI President said that the reported increase in outstanding SME financing from Rs1.114 trillion in June 2026 to more than Rs1.137 trillion by September 2026, along with the rise in the number of SME borrowers to around 350,862, was an encouraging development. He stressed that this momentum should be sustained through practical and business-friendly measures.
He said that achieving the ambitious financing target would require strong coordination among the government, State Bank of Pakistan, commercial banks, microfinance institutions, SMEDA and the private sector. He emphasized the need to simplify financing procedures, strengthen SME bankability, improve financial literacy and expand the use of digital platforms.
Ali Hussam Asghar said many SMEs possessed significant growth potential but faced difficulties in accessing formal credit because of documentation requirements, limited financial literacy and other procedural barriers. These challenges, he added, should be addressed through coordinated policy measures and greater engagement with the business community.
He said financial institutions should develop flexible and practical financing products suited to the needs of SMEs, particularly small businesses and startups that often face difficulties in meeting conventional lending requirements.
The LCCI President also welcomed the government’s broader initiatives to improve access to finance for agriculture and housing, saying that increased financing for productive sectors could generate a multiplier effect across the economy.
He said enhanced agricultural financing could support farmers, improve productivity and strengthen the agricultural value chain, while expanded housing finance could stimulate construction activity and create employment across numerous allied industries.
Ali Hussam Asghar emphasized that the objective should not merely be to increase the availability of funds but to establish a sustainable and inclusive financial ecosystem in which SMEs and other underserved sectors could obtain financing on affordable and practical terms.
He reiterated that the business community was ready to work with the government and financial institutions to make the SME financing initiative successful. Chambers of commerce, he added, could play an important role in identifying genuine financing needs, creating awareness among businesses and facilitating closer coordination between SMEs and financial institutions.
The LCCI President expressed confidence that the government’s SME financing initiative, if implemented effectively, would help unlock the potential of Pakistan’s small and medium-sized businesses, encourage investment, generate employment and contribute significantly to sustainable economic growth.
He appreciated Prime Minister Muhammad Shehbaz Sharif for placing SME development and access to finance among the important priorities of the government and expressed the hope that the initiative would pave the way for a stronger, more competitive and financially inclusive SME sector in Pakistan.
