ISLAMABAD: Prime Minister Shehbaz Sharif instructed on Thursday to increase the loan limit for small and medium enterprises (SMEs) under a government program from Rs500,000 to Rs1.5 million, while also calling for a special package for women entrepreneurs to support their businesses.
Earlier this month, Sharif described SMEs as the “backbone” of Pakistan’s economy and directed officials to take measures to integrate them into the global supply chain.
Pakistan has been striving to attract foreign investment while recovering from a prolonged economic crisis marked by a balance of payments challenge, dwindling foreign reserves and a depreciating rupee.
Sharif recently underscored the need to first strengthen domestic investment to make the country more appealing to foreign businesses.
“Under the Prime Minister’s Youth Program, the loan amount for small businesses should be increased from Rs500,000 [$1,794] to Rs1.5 million [$5,381],” Sharif’s office said in an official statement after be chaired a meeting. “A special package for women entrepreneurs should be formulated and presented soon to support their small businesses.”
The government announced several initiatives, including the introduction of a new category for micro and home-based businesses, offering simplified loan procedures and enhanced support.
Sharif emphasized that empowering women and youth entrepreneurs would not only help generate self-employment but also create more job opportunities across the country.
“SMEs play a key role in economic development worldwide,” the prime minister said. “The government’s top priority is to promote them to boost the country’s exports.”
“The government is committed to empowering youth and women entrepreneurs to such an extent that they not only generate self-employment but also create additional job opportunities,” he added.
The PM Office also highlighted plans to conduct a comprehensive survey of SMEs nationwide to improve the facilities provided to them.
Additionally, the Small and Medium Enterprises Development Authority (SMEDA) is set to launch financial literacy and training programs by February, alongside initiatives to introduce SMEs to modern technology by mid-year.
