Rs221b given under youth loan

An amount of Rs221 billion has been disbursed Under the Prime Minister’s Youth Business & Agriculture Loan Scheme while the banking sector has provided overall SME financing of Rs882.4 billion to 302,922 borrowers.

The 15th meeting of the National Coordination Committee (NCC) on Small and Medium Enterprises (SME) Development was held under the chairmanship of Special Assistant to Prime Minister on Industries and Production Haroon Akhtar Khan.

The meeting was attended by Ministry of Industries and Production Secretary Saif Anjum, the Small and Medium Enterprises Development Authority (Smeda) CEO, representatives of provincial ministries and officials from the banking sector.

As of December 31, 2025, the total outstanding SME financing stood at Rs882 billion, reflecting a 36% year-on-year increase, while the number of SMEs facilitated reached around 303,000, marking a 65% YoY growth.

Under the SAAF Scheme, Rs60 billion in clean lending was provided, benefiting 12,500 SMEs. Similarly, under the Prime Minister’s Youth Business and Agriculture Loan Scheme, a financing of Rs221 billion was disbursed, facilitating 461,795 SMEs and beneficiaries.

The first agenda item in the meeting focused on revising the definition of SMEs by enhancing the annual sales turnover threshold. It was proposed that micro enterprises be defined as businesses with annual sales up to Rs30 million, small enterprises from more than Rs30 million to Rs400 million and medium enterprises from more than Rs400 million to Rs2,000 million.

Haroon Akhtar stated that revising the definition and scope of SMEs was the need of the hour and emphasised that federal and provincial institutions would adopt the updated framework.

He added that SMEs were the backbone of the economy and the government was undertaking comprehensive measures to promote and strengthen the sector. He noted that there was complete consensus between the federation and provinces on the revision of SME definition and scope.

The second key agenda item was the implementation of the National SME Policy 2021. The committee emphasised that effective implementation of the policy across Pakistan would empower MSMEs and enhance their contribution to economic growth. Smeda and provincial authorities were directed to ensure regular follow-up and progress reporting.

Highlighting access to finance as a major driver for SME growth, Haroon Akhtar stated that all banks were on board to facilitate credit access for SMEs from Gilgit-Baltistan to Azad Jammu & Kashmir and Balochistan. He added that the industrial policy also focused on ease of access to credit and tax relief measures to further support the sector.

The special assistant termed the Skill Development Bonds and artificial intelligence training initiatives for SMEs encouraging steps. He described Smeda’s efforts to equip SMEs with modern skills and AI-based training as a significant advancement towards enhancing competitiveness and innovation in the sector.