LAHORE: The Small and Medium Enterprises Development Authority (SMEDA), in collaboration with the State Bank of Pakistan (SBP), organised a seminar on cluster-based lending studies to explore practical ways of expanding financing opportunities for Pakistan’s Small and Medium Enterprises (SMEs).
The seminar brought together representatives of financial institutions, industry stakeholders, partner organisations and other key stakeholders to discuss ways to improve SMEs’ access to formal finance and strengthen their linkages with the banking sector.
Addressing the gathering, SMEDA Chief Executive Officer Nadia Jahangir Seth stressed the need to translate research and sector-specific insights into commercially viable lending opportunities for financial institutions.
She said a better understanding of individual SME clusters could enable banks to develop more informed and appropriate financing solutions tailored to the needs of businesses. The seminar also featured a keynote address by Dr Muhammad Saleem, Head of Department, SH&SFD, State Bank of Pakistan, followed by a detailed presentation on cluster-based lending studies.
Speaking about the government’s broader SME development agenda, SMEDA General Manager Raja Hassanien Javaid said SME development, competitiveness and access to finance remained important priorities.
He said the SME financing had increased by 30.5 per cent year-on-year, from Rs691 billion to Rs901.6 billion as of June 2026, while the number of SME borrowers rose by 15.18 percent to 318,585 businesses.
Highlighting the importance of SMEs to the national economy, he said the Pakistan Economic Census 2023 had recorded approximately 7.14 million economic entities across the country. The SMEs contribute around 40 percent of GDP and 30 percent of overall exports, while accounting for more than 80 percent of non-agricultural employment.
The seminar also discussed the SME Credit Scoring Services Model, under which SMEDA is developing a standardised credit risk assessment model for SMEs.
The model has been tested by participating banks through the Pakistan Banks’ Association and is intended to serve as a supplementary assessment tool for financial institutions.
Copyright Business Recorder, 2026
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