ISLAMABAD: The Government of Pakistan has reiterated its commitment to supporting Micro, Small and Medium Enterprises (MSMEs), recognizing their vital contribution to economic development, job creation, and entrepreneurship. The announcement was made during an interactive session held to mark World MSME Day 2026, where government officials and business representatives discussed measures to strengthen the sector.
Speaking at the event, Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, emphasized that the promotion of MSMEs remains one of the government’s key economic priorities. He said the government, under the leadership of Prime Minister Shehbaz Sharif, is working to improve access to finance, encourage business formalization, and provide entrepreneurs with training and capacity-building opportunities to help them expand their businesses.
Haroon Akhtar highlighted the significant progress made in SME financing over the past year. According to the latest data from the State Bank of Pakistan, the total SME financing portfolio increased from Rs. 584.44 billion in March 2025 to Rs. 853.94 billion by March 2026, reflecting a 46 percent increase. During the same period, the number of SME borrowers also rose by over 53 percent, demonstrating improved access to financial services for small businesses across the country.
He further stated that the government is placing special emphasis on supporting women entrepreneurs and microenterprises, particularly in underserved regions. Partnerships with organizations such as Alibaba, JICA, PIFD, and various microfinance institutions are helping MSMEs improve market access and expand their business opportunities. The government’s ultimate objective, he said, is to ensure long-term growth and sustainability for Pakistan’s small business sector.
SMEDA Chief Executive Officer Nadia Jahangir Seth said World MSME Day serves as an opportunity to acknowledge the resilience, innovation, and economic contributions of millions of entrepreneurs across Pakistan. She explained that under SMEDA’s three-year business plan, the organization is working to make businesses more competitive by promoting digital transformation, business formalization through the SME Registration Portal (SMERP), export readiness, and stronger business linkages.
She also highlighted several important initiatives, including the SME Certification and International Accreditation Grant Programme and a five-year project aimed at converting banana waste into environmentally friendly textile products. In line with the Prime Minister’s vision of inclusive economic growth, SMEDA is also helping women-led enterprises improve digital and financial literacy, develop products, access export markets, and build stronger value chains.
President of the Islamabad Chamber of Small Traders and Small Industries, Awais Satti, welcomed the government’s renewed focus on MSMEs and stressed that closer collaboration between the public and private sectors, along with better access to finance and markets, will unlock the full potential of Pakistan’s small business community.
To commemorate World MSME Day, SMEDA organized awareness sessions and stakeholder discussions in several cities, including Islamabad, Lahore, Faisalabad, Gujranwala, Gujrat, Sialkot, Multan, Sargodha, Abbottabad, Hyderabad, Dadu, Sukkur, Mirpur, and Rawalpindi. These events encouraged dialogue between entrepreneurs and policymakers while providing participants with information about SMEDA’s services and inviting recommendations to improve Pakistan’s business environment and strengthen the competitiveness of local enterprises.
