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Govt ramps up assistance programs for MSMEs to play crucial role in Pakistan’s economic plan

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Micro, Small and Medium Enterprises (MSMEs) have played an important role in leading the national economic development in difficult economic circumstances and the government of Pakistan is giving full support to MSMEs.

Haroon Akhtar Khan, Special Assistant to the Prime Minister for Industries and Production, said this while addressing an interactive session arranged to celebrate World MSME Day 2026. The workshop was organized by Small and Medium Enterprises Development Authority (SMEDA) at Islamabad Chamber of Small Traders and Small Industries (ICSTSI) to promote communication, networking and wider outreach to MSMEs for government support.

A quick documentary showing SMEDA’s core initiatives and efforts targeted at enhancing Pakistan’s small business environment set the tone for nationwide festivities staged to honor the United Nations designated day.

The SAPM said MSME growth is at the heart of the government’s economic goal. He said the government under Prime Minister Muhammad Shehbaz Sharif was striving to increase access to finance, promote business formalisation and create new chances for firm growth through capacity building and training programmes.

“Encouraging growth in lending by banks and microfinance institutions, access to credit is still one of our top priorities,” Haroon Akhtar Khan remarked.

Pakistan’s SME lending portfolio climbed to Rs. 853.94 billion as of March 31, 2026, from Rs. 584.44 billion on March 31, 2025, showing growth of 46 per cent, data from the State Bank of Pakistan (SBP) showed.

Similarly, the number of SME borrowers rose to 312,355 as of March 31, 2026, compared to 203,139 recorded a year earlier, representing a growth of 53.7 per cent.

“The government is equally committed to supporting women entrepreneurs and microenterprises, especially those operating in underserved areas to build a vibrant and globally competitive MSME ecosystem capable of contributing towards inclusive and sustainable economic growth,” he added.

The SAPM claimed that efforts were being made to provide possibilities to MSMEs by strengthening market access and enhancing linkages of business with various organisations including Alibaba, JICA, PIFD and financing institutions.

“The goal of the government is sustainable prosperity for our MSMEs,” he stated.

The projects of SMEDA

SMEDA Chief Executive Officer Nadia Jahangir Seth said the World MSME Day is an opportunity to acknowledge the resilience, ingenuity and contribution of millions of Pakistani businesses towards the national economy.

She added that SMEDA was focused on making MSMEs bankable and digitally enabled, highlighting its initiatives under the three-year Business Plan. She said that the organization was following a revitalized vision and strategic direction defined by the Ministry of Industries and Production and its Board of Directors.

SMEDA was striving for promotion of business formalisation through free registration facilities available through SME Registration Portal (SMERP) besides focusing on export readiness, inter-firm connections and climate related measures, she added.

She also highlighted major programs such as the SME Certification and International Accreditation Grant Programme and a five-year project to turn banana waste into eco-friendly textile items.

SMEDA was working with women-led firms and microenterprises to increase their digital and financial literacy, product development and export readiness as part of Prime Minister Shehbaz Sharif’s objective of inclusive economic growth, Seth added.

“These initiatives are also targeted at providing entrepreneurs with better market access, B2B linkages and opportunities for value chain integration,” she said.

“SMEDA continues to focus on building an enabling environment which will help enterprises to be more competitive, bankable and globally connected,” she added.

Nationwide Campaigns

The President of Islamabad Chamber of Small Traders and Small Industries, Awais Satti applauded the activities being carried out through SMEDA and welcomed the government’s increased focus on MSME growth.

He said the potential of Pakistan’s MSME sector could be unlocked by stronger public-private collaboration, better access to funding and wider market prospects.

27 June is observed as World MSME Day across the globe in recognition of the contribution of MSMEs to employment generation, innovation and sustainable economic growth.

This year SMEDA arranged interactive sessions and talks in Islamabad, Rawalpindi, Lahore, Faisalabad, Gujranwala, Gujrat, Sialkot, Multan, Sargodha, Abbottabad, Hyderabad, Dadu, Sukkur and Mirpur.

Lahore Chamber of Commerce and Industry (LCCI) in cooperation with SMEDA organised a stakeholders engagement session in Lahore. The President LCCI, Faheem Ur Rehman Saigol was chief guest on the occasion and he emphasized on the necessity of entrepreneurship and enterprise growth for boosting Pakistan’s economy.

He acknowledged the contribution of MSMEs for generating job opportunities, fostering innovation and inclusive economic growth.

Regional Chief, Central, SMEDA, Muhammad Javed Afzal spoke on the importance of World MSME Day and informed the audience about the mandate, services and current initiatives of SMEDA for MSME growth.

The seminars also offered an opportunity for participants to exchange ideas on improving the business climate and boosting the competitiveness of local businesses.

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Saudi delegation eyes Karachi port investments as Pakistan expands maritime trade

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A Saudi business delegation led by Prince Mansoor bin Mohammed Al Saud has expressed interest in investing in Karachi’s port infrastructure, logistics links and green initiatives, Pakistani authorities said Monday, as Islamabad seeks to expand maritime cooperation with its longtime Gulf ally.

The visit comes amid efforts by Pakistan and Saudi Arabia to expand economic partnership from traditional trade, remittances and financial support to investment-based cooperation in infrastructure, energy and other areas. Pakistan is also seeking to modernize its ports, improve connections with land transport networks and expand transshipment operations to strengthen its position in regional trade.

Prince Mansoor, Chairman of the Saudi Arabian Chapter of the Saudi-Pakistan Joint Business Council, led a high-level corporate delegation to Karachi Port Trust (KPT), Port Qasim and South Asia Pakistan Terminals Limited, where officials were briefed on investment opportunities and ongoing modernization projects.

The briefings focused on the proposed 140-acre Maritime Business District in Karachi and the development of Manora Shipyard.

“Prince Mansour expressed keen interest in KPT’s Maritime Business District, Green port initiatives, terminal infrastructure expansion and connectivity initiatives, recognizing their scope for mutually beneficial Saudi investment and joint ventures,” the KPT said in a statement. The Saudi-Pakistan Joint Business Council serves as a platform for companies and investors from both countries to identify commercial opportunities, develop partnerships and form joint ventures. Prince Mansour has led several delegations to Pakistan as the two governments seek to translate their long-standing political and defense ties into greater private sector investment. In June, KPT signed a memorandum of understanding with its Saudi Arabian and Pakistani partners to explore the development of a maritime business zone on MT Khan Road in Karachi.

The proposed development involves the Saudi Arabian Business Council – Najd Gateway Holding Company, Arif Habib Dolmen REIT Management Limited and a consortium of Pakistani companies and is intended to accommodate commercial and maritime businesses.

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Bullish momentum continues as PSX gains over 300 points

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The Pakistan Stock Exchange (PSX) opened in positive territory on Wednesday with the benchmark KSE-100 gaining 309 points in early trade.

The index rose to 179,600 points, continuing the upward momentum in the market at the start of the third trading day of the business week.

The latest gains follow a strong performance in the previous session, when the stock market maintained its upward trend throughout trading.

At the close of Tuesday’s session, the KSE-100 Index had surged by 5,448 points to settle at 179,335 points.

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Pakistan, Saudi Arabia investors launch fund to boost trade, investment

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A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the countries’ broader push to deepen two-way trade and private sector investment.

The Saudi-Pakistan Joint Business Council, formed by the governments of both countries, said the fund’s initial size is “multi hundred million”, which is expected to expand based on opportunities across sectors.

Three-fourths of the fund will be invested in Pakistan, while the rest will be invested in Saudi Arabian projects, the council said in a statement.

The launch of ⁠the ⁠fund comes at a time when Islamabad and Riyadh are deepening longstanding ties, especially in defense, amid few signs of a breakthrough in the months-long US-Iran conflict.

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