Pakistan PM boosts SME loans, plans special package for women entrepreneurs

Pakistan Prime Minister Shehbaz Sharif chairs a meeting in Islamabad, Pakistan on January 2, 2025. (PID/File)
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Updated 16 January 2025
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Pakistan PM boosts SME loans, plans special package for women entrepreneurs

  • Shehbaz Sharif says empowering youth and women entrepreneurs will help create additional jobs in economy
  • The government plans to conduct a comprehensive SME survey to improve the facilities provided to them

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.


Pakistan says it is targeting militant infrastructure in Afghanistan as Kabul threatens to hit Islamabad

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Pakistan says it is targeting militant infrastructure in Afghanistan as Kabul threatens to hit Islamabad

  • Ata Tarar says Pakistan is carrying out ‘precise intelligence-based operations’ to avoid civilian casualties
  • Afghan defense minister says the underlying dispute between the two sides is over the ‘Durand Line’ border

ISLAMABAD: Pakistan said on Saturday it was conducting intelligence-based operations against militant infrastructure inside Afghanistan while attempting to avoid civilian casualties, as a senior Afghan Taliban official warned Kabul could retaliate by targeting Islamabad if Pakistani forces struck the Afghan capital.

The escalating rhetoric comes as cross-border fighting between the two neighbors intensifies following clashes that began last month when Afghan forces launched attacks on Pakistani military installations along the frontier. Kabul said the assault was retaliation for Pakistani airstrikes targeting what Islamabad called militant camps inside Afghanistan.

Pakistan’s defense minister Khawaja Muhammad Asif said last week the situation had effectively become “open war” between the two countries.

“Pakistan is only targeting terrorist infrastructures and support system with precise intelligence based operations ensuring no collateral damage takes place,” Pakistan’s Information Minister Ataullah Tarar said in a statement.

He challenged the recent claims made by an Afghan defense ministry spokesperson earlier this week who said his country was making significant battlefield gains against Pakistan including the killing of 109 soldiers and the capture or destruction of 14 military posts in large scale attacks.

“These so called attacks by Afghan Taliban in coordination with FAK [Fitna Al Khawarij] Terrorists once again confirm the nexus of Afghan Taliban regime and multiple terrorist organizations operating from within their territory,” Tarar continued. “All such attempts are responded to, immediately and effectively with severe retributive punishment that is swift, precise and effective.”

“The imaginary numbers being floated by Afghan Taliban regime are however not worth any serious comment,” he added.

Tarar said Pakistan’s military campaign — described as Operation Ghazb Lil Haq — had inflicted heavy losses on Afghan Taliban forces.

According to figures shared by the minister, 527 Taliban fighters had been killed and more than 755 injured since the clashes began, while 237 check posts were destroyed and 38 captured and destroyed. He said 205 tanks, armored vehicles and artillery guns were destroyed and 62 locations across Afghanistan had been targeted by air strikes.

Arab News could not independently verify the claims made by either side.

CIVILIAN CASUALTIES

Earlier this week, the United Nations raised concern over the toll of the escalating conflict on civilians.

UN human rights chief Volker Turk said on Friday that 56 Afghan civilians — nearly half of them children — had been killed since hostilities between Pakistan and Afghanistan intensified.

However, Tarar questioned the UN findings, saying its assertions appeared to rely heavily on information provided by Taliban authorities and did not adequately reflect independently verified intelligence.

“Pakistan categorically reiterates that all counter-terrorism operations conducted by its security forces are carried out with the highest degree of precision, professionalism, and responsibility,” he said.

Islamabad has long accused the Taliban government of allowing militant groups, including the Tehreek-e-Taliban Pakistan (TTP), to operate from Afghan soil, a charge Kabul denies.

“Operations are meticulously planned so that civilian areas remain completely safe,” the minister said. “The locations targeted are remote terrorist hideouts and facilities far removed from populated zones, including sensitive areas such as Kabul’s Green Zone.”

AFGHAN WARNING

Meanwhile, Afghanistan’s Defense Minister Mullah Yaqoob issued a warning to Pakistan in remarks circulated by Afghan broadcaster TOLOnews.

“If Kabul lacks peace, there will be no peace in Islamabad. If Kabul is attacked, Islamabad will be attacked,” Yaqoob said in a promotional clip of an interview shared on social media.

Yaqoob rejected Pakistan’s justification that the presence of the TTP in Afghanistan warranted military action and suggested the underlying dispute was over the contested “Durand Line” border between the two countries.

So far, there has been no official response from Pakistan to Yaqoob’s remarks.