The government has directed banks and other financial institutions to make loans more accessible to small businesses and speed up the financing process.
Finance Minister Muhammad Aurangzeb chaired a meeting to review lending to Small and Medium Enterprises (SMEs) and discuss ways to help more businesses obtain bank financing.
The meeting reviewed the volume of loans issued to SMEs and the number of businesses receiving financing. Officials noted that although lending had increased, bringing more small businesses into the formal banking system remained a priority.
The finance minister stressed that commercial banks, microfinance banks and non-bank financial institutions should expand their lending to smaller businesses, particularly those involved in exports.
New Portal for Small Business Loans
The meeting also reviewed the newly launched SME Connect portal, which allows small businesses to apply for loans directly and connect with banks.
Aurangzeb welcomed the initial response to the platform, saying thousands of applicants had shown interest since its launch earlier this week.
He directed officials to improve the portal and simplify its procedures so businesses can access financing more easily.
The meeting also discussed better use of financing limits reserved for SMEs, particularly loans for export-related activities.
Aurangzeb called for closer coordination between banks and the Small and Medium Enterprises Development Authority (SMEDA) to help businesses meet lending requirements and improve their chances of securing loans.
He also directed relevant ministries to identify and resolve regulatory hurdles affecting SME financing.
The government says expanding access to credit for small businesses is part of its broader plan to increase investment, bring more businesses into the formal economy and boost exports.
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