KARACHI: Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan said the government is prioritising the development of micro, small and medium enterprises (MSMEs) as part of its broader economic reform agenda, describing the sector as central to employment, exports and industrial growth.
Speaking at a World MSME Day 2026 ceremony in Islamabad, Khan said MSMEs form the backbone of the economy, citing official estimates that the sector comprises around 7.14 million enterprises, contributes nearly 40 per cent of GDP and accounts for 30 per cent of exports while employing more than 80 per cent of the non-agricultural workforce.
He said the government’s economic strategy is focused on industrialisation, export-led growth, innovation and private-sector development, with MSME expansion positioned as a key policy priority.
“The future of global competitiveness will be shaped by artificial intelligence, digital transformation and innovation,” Khan said.
He said Pakistan was working to improve the business environment and expand access to finance for smaller firms. Citing State Bank of Pakistan data, he noted that SME financing had risen to about Rs854 billion as of March 31, 2026, up from Rs584 billion previously. The number of SME borrowers increased 53 per cent to more than 312,000, he said.
Khan also announced the establishment of a Rs30 billion SME Development Fund, which he said would support initiatives aimed at improving competitiveness, export capacity and sustainable growth among small businesses.
He highlighted the role of the Small and Medium Enterprises Development Authority (SMEDA), saying it is implementing a three-year plan focused on formalisation, access to finance, certification support, export readiness, digital adoption and integration into global supply chains.
On women entrepreneurship, he said the government was prioritising measures to expand access to finance, markets and business support services. He cited SMEDA’s National Women Entrepreneurship Policy and Action Plan, which he said could benefit more than 3.2 million women entrepreneurs.
Earlier, SMEDA Chief Executive Officer Nadia Jahangir Seth outlined ongoing initiatives under the agency’s three-year plan, including SME registration, export readiness programmes, certification support, digital transformation and climate-focused enterprise development.
