The United Business Group (UBG) president Mr. Zubair Tufail and Central leaders Zafar Bakhtiari, Momin Ali Malik, Hanif Gohar, Syed Mazhar Ali Nasir, Malik Khuda Bakhsh and Gulzar Firoz, have welcomed the State Bank of Pakistan’s latest initiative to revise prudential regulations for SME financing, terming it a timely and transformative step towards unlocking the true potential of Pakistan’s small and medium enterprises.
In a statement UBG leaders praised the State Bank’s comprehensive reform package aimed at removing structural lending barriers and fostering inclusive, responsible, and sustainable access to finance for SMEs — a sector that contributes nearly 40% to the national GDP and employs around 80% of the non-agricultural workforce.
“We strongly commend the State Bank for responding to a long-standing demand of the business community,” said senior leaders of UBG. “This reform not only encourages credit flow to underserved SMEs, but also aligns financial policy with ground realities and economic needs.”
UBG noted that despite SMEs being the backbone of Pakistan’s economy, their access to bank credit remained dismally low at just 6%. The group expressed optimism that the revised framework — which emphasizes principles-based regulation, fintech partnerships, and technology-driven solutions — will significantly improve credit disbursement and ease financial constraints faced by millions of SMEs across the country.
The group also appreciated SBP’s public consultation approach and its target to double SME financing to Rs 1.1 trillion under Vision 2028, calling it a bold and ambitious milestone.
UBG leader further emphasized that enhanced SME lending would not only boost domestic economic activity but also strengthen Pakistan’s export base, as SMEs contribute around 25% of the country’s total exports. The reforms, combined with the recent decline in interest rates, are expected to pave the way for inclusive economic growth and large-scale employment generation.
The United Business Group reiterated its commitment to working closely with policymakers and financial institutions to ensure successful implementation of these reforms and to build a stronger, more resilient SME sector in Pakistan.
