Governor Jameel Ahmad says SME financing has more than doubled since June 2024, while the SME Connect Portal will allow businesses to apply for loans online from November 1.
Lahore, October 30, 2026: State Bank of Pakistan (SBP) Governor Jameel Ahmad has said that expanding financing for small and medium enterprises (SMEs) is among the government’s key economic priorities, alongside agriculture, housing and exports.
Addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI) on Friday, he said outstanding SME financing had increased to approximately Rs1.11 trillion in June 2026, compared with Rs491 billion in June 2024.
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The number of SME borrowers also rose from 177,000 in June 2024 to around 325,000 in June 2026.
Ahmad said the limit for collateral-free SME loans had been increased from Rs10 million to Rs50 million. The annual turnover threshold for small enterprises was raised from Rs150 million to Rs400 million, while that for medium enterprises increased from Rs800 million to Rs2 billion.
Businesses with annual turnover of up to Rs2 billion can now benefit from SME financing facilities.
SME Connect Portal to launch on November 1
The SBP Governor said the central bank, in collaboration with SMEDA and commercial banks, had simplified SME loan applications into a single-page form.
The SME Connect Portal will become operational on November 1, 2026, enabling entrepreneurs to submit loan applications online and track their progress at every stage.
He added that the government was addressing the cost of doing business, taxation and energy-related challenges.
Under the revised housing finance scheme introduced in March 2026, banks approved Rs521 billion in financing for approximately 80,000 applicants within six to seven months, compared with outstanding housing finance of Rs251 billion before the revision.
The Prime Minister’s Youth Business and Agriculture Scheme is also providing loans to young entrepreneurs at mark-up rates ranging from zero to 7 per cent.
Export financing limit increased
Ahmad said the Export Refinance Scheme limit had been increased from Rs1 trillion to Rs1.5 trillion, with Rs300 billion specifically allocated for SME exporters.
The Cabinet had also approved a 10-year long-term export financing scheme to support export-oriented investment.
LCCI seeks additional SME financing support
LCCI President Ali Hussam Asghar proposed a joint financing mechanism involving industry, the government, EXIM Bank and commercial banks. He suggested selecting 1,000 SMEs to identify financing obstacles and develop a facilitation model that could be replicated nationwide.
He also called for linking the SBP and LCCI complaint centres to address banking issues faced by importers and exporters, including delays in opening letters of credit.
LCCI Senior Vice President Sardar Usman Ghani highlighted the potential of Islamic banking, saying its financing had reached Rs6 trillion, with annual growth of 48.9 per cent.
However, Islamic banks accounted for only 15.9 per cent of SME financing. He proposed a minimum SME financing target of 5.9 per cent for Islamic banks, which could generate an additional Rs204 billion for businesses.
He also noted that the bad-debt ratio in Islamic banks’ SME portfolios stood at 2.2 per cent, compared with 5.5 per cent across the overall banking sector.
LCCI Vice President Chaudhry Khadim Hussain urged authorities to translate the proposals discussed into practical measures to resolve business challenges and strengthen the SME sector.
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