Business community urges boost in SME financing

PESHAWAR: Members of the business community urged government and State Bank of Pakistan should increase share of Small and Medium Enterprises (SMEs) financing, besides expansion of credit guarantee schemes through EXIM Bank.

They also called for establishment of KP Industrial and Youth Empowerment Fund under State Bank of Pakistan and Special Investment Facilitation Council, besides gradual reduction in policy rate from 11.5 to 6 percent.

READ MORE: Govt focusing on expanding SMEs’ access to credit

They made these proposals and demands during an Awareness Session on Islamic Banking and Finance, organised by Financial Inclusion Division, State Bank of Pakistan (SBP) BSC Peshawar in collaboration with the Sarhad Chamber of Commerce and Industry here, chaired by SCCI president Junaid Altaf.

The session was aimed at enhancing members’ understanding of Shariah-compliant banking and financing solutions.

Both sides announced plans to form a focus group, with representation of chamber officials from SBP and Commercial banks, which would take initiatives to resolve specified issues.

Copyright Business Recorder, 2026