Mardan Ali Zaidi welcomes Rs2 trillion SME financing target, calls for easier credit access
By Commerce Reporter
LAHORE: Mardan Ali Zaidi, Executive Committee member of the Lahore Chamber of Commerce and Industry (LCCI), has welcomed the federal government’s target of increasing financing for small and medium-sized enterprises (SMEs) to Rs2 trillion by June 2028, describing it as an important step towards strengthening businesses, generating employment and promoting sustainable economic growth.
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He said the initiative, announced under Prime Minister Shehbaz Sharif’s economic agenda, could help small businesses expand operations, modernise production, adopt new technologies and contribute more effectively to Pakistan’s industrial and commercial development.
Zaidi said SMEs were a vital component of the national economy, with considerable potential to create jobs, encourage entrepreneurship, increase investment and strengthen the country’s export capacity.
However, he stressed that achieving the financing target would require more than an increase in the availability of funds. Simplified lending procedures, affordable interest rates and flexible financing arrangements were essential to ensure that businesses could benefit from the initiative.
He pointed out that many small businesses faced difficulties accessing formal credit because of extensive documentation requirements, limited financial literacy and other procedural barriers.
Zaidi urged banks and financial institutions to develop practical financing products tailored to the needs of SMEs, particularly startups and smaller enterprises that often struggle to meet conventional lending criteria.
He said stronger coordination among the government, State Bank of Pakistan, commercial banks, microfinance institutions, the Small and Medium Enterprises Development Authority (SMEDA) and the private sector would be necessary to achieve the target.
The LCCI executive committee member also emphasised the importance of financial awareness and digital banking facilities in expanding access to credit and bringing more businesses into the formal financial system.
He said the target of reaching 775,000 potential SME borrowers by June 2028 could broaden financial inclusion and provide more entrepreneurs with opportunities to establish and expand their businesses.
Zaidi said chambers of commerce could play a constructive role in identifying the financing needs of businesses, raising awareness about available facilities and facilitating communication between entrepreneurs and financial institutions.
He also welcomed initiatives to improve access to financing for agriculture and housing, saying investment in productive sectors could stimulate economic activity and create employment across multiple industries.
He noted that improved agricultural financing could help farmers increase productivity and strengthen the agricultural value chain, while greater access to housing finance could support construction and allied industries.
Zaidi expressed confidence that effective implementation of the SME financing initiative would encourage investment, strengthen entrepreneurship and improve the competitiveness of Pakistan’s business sector.
He urged the government and financial institutions to ensure that the benefits of the initiative reached deserving businesses, adding that affordable and accessible credit would be critical to achieving sustainable and inclusive economic growth.
He stressed that transparent procedures, simplified lending requirements and reduced borrowing costs would help entrepreneurs expand operations, generate employment and strengthen Pakistan’s productive capacity. He added that affordable and accessible credit would be critical to promoting entrepreneurship, supporting industrial development and achieving sustainable, inclusive and long-term economic growth across the country.
