MSMEs take centre stage in govt’s economic vision, says SAPM Haroon Akhtar Khan

ISLAMABAD -- The Government of Pakistan is extending maximum support to the Micro, Small and Medium Enterprises (MSMEs) which have assumed a significant role in steering the national economic growth in these challenging times.

This was stated by Haroon Akhtar Khan, Special Assistant to the Prime Minister for Industries and Production, while delivering the keynote address at an interactive session on World MSME Day 2026.

The Small and Medium Enterprises Development Authority (SMEDA) hosted the session at the Islamabad Chamber of Small Traders and Small Industries (ICSTSI) to promote dialogue and networking to reach out a maximum number of MSMEs for government support.

A brief documentary highlighting SMEDA’s key initiatives set the tone for nationwide outreach activities on the UN designated day.  

The SAPM emphasized that MSME development remains central to the government's economic agenda. Under the leadership of Prime Minister Muhammad Shehbaz Sharif, the government is striving for improving access to finance, promoting business formalization and creating new opportunities for enterprise growth through capacity building and training.

“Access to credit remains one of our foremost priorities, with encouraging growth in lending by banks and microfinance institutions. As per SBP published data as of March 31, 2026, Pakistan’s SME financing portfolio surges to Rs. 853.94 billion which was Rs. 584.44 billion on March 31, 2025 - an impressive growth of 46 percent.

“Similarly, the number of SME borrowers rises to 312,355 (as of March 31, 2026) which was 203,139 on March 31, 2025 - an increase of 53.7 percent.”

He said the government is equally committed to providing support to women entrepreneurs and microenterprises, especially those in underserved areas, to ensure a vibrant and globally competitive MSME ecosystem capable of driving inclusive and sustainable economic growth.  

He said our collaboration with Alibaba, JICA, PIFD and microfinance institutions was meant for providing a springboard to the MSMEs to gain access to market.  

“The government’s aim is enduring prosperity of our MSMEs,” he said.

Ms Nadia Jahangir Seth, Chief Executive Officer of SMEDA, said World MSME Day provides an opportunity to recognize the resilience, innovation and contribution of millions of Pakistani entrepreneurs to the national economy.

Highlighting SMEDA’s key initiatives being executed under a robust three-year Business Plan, she said the organization under a renewed vision and strategic direction set by the MoI&P and Board of Directors was trying to deliver through making MSMEs bankable and digitally equipped, promoting business formalization by offering free registration through SME Registration Portal (SMERP), export readiness, inter-firm linkages and climate initiatives.

She cited key projects, including SME Certification and International Accreditation Grant Programme and a five-year project to convert banana waste into eco-friendly textile.

In the light of honorable Prime Minister Shehbaz Sharif’s vision of inclusive economic growth, she said SMEDA was reaching out to women-led and microenterprises to equip them with digital and financial literacy, product development and export readiness, and providing them opportunities for market access, B2B linkages and value chain integration.    

Ms Seth added that SMEDA remains committed to creating an enabling environment that helps enterprises become more competitive, bankable and globally connected.

Meanwhile, Islamabad Chamber of Small Traders and Small Industries President Awais Satti welcomed the government's renewed focus on MSME development and appreciated the initiatives being undertaken through SMEDA.

He said stronger public-private collaboration and improved access to finance and markets are essential for unlocking the true potential of Pakistan's MSME sector.

World MSME Day is observed globally on June 27 to recognize the contribution of MSMEs to employment generation, innovation and sustainable economic growth.

This year, SMEDA organized interactive sessions and discussions in Islamabad, Rawalpindi, Lahore, Faisalabad, Gujranwala, Gujrat, Sialkot, Multan, Sargodha, Abbottabad, Hyderabad, Dadu, Sukkur and Mirpur.

In Lahore, SMEDA, in collaboration with the Lahore Chamber of Commerce and Industry (LCCI), organized a stakeholder engagement session.

Faheem Ur Rehman Saigol, President LCCI, graced the occasion as chief guest and highlighted the importance of entrepreneurship and enterprise development in strengthening Pakistan's economy. He appreciated the role being played by MSMEs in creating employment opportunities, fostering innovation and promoting inclusive economic growth.

Muhammad Javed Afzal, Regional Chief, Central, SMEDA, highlighted the significance of World MSME Day and briefed participants on SMEDA's mandate, services and ongoing initiatives for MSME development.

The session also provided an opportunity for participants to share recommendations aimed at improving the business environment and enhancing the competitiveness of local enterprises.