ISLAMABAD: Pakistan has lowered the threshold for defining microenterprises to include companies with annual revenues of up to Rs30 million ($106,000) under the national Small and Medium Enterprise (SME) development framework, and has finalized a draft Women’s Entrepreneurship Policy, the Prime Minister’s Office said on Tuesday.

The measures are part of a broader push by the government to revive the economy by expanding private-sector innovation and participation following years of economic distress. Pakistan’s financial outlook began improving after securing several International Monetary Fund (IMF) loans and introducing structural reforms that stabilized macroeconomic indicators.

Prime Minister Shehbaz Sharif chaired a review meeting of the Small and Medium Enterprises Development Authority's (SMEDA) steering committee to evaluate the performance of the SME sector. Officials briefed him on reforms aimed at enhancing the authority’s institutional capacity and outreach.

“Companies with annual business up to Rs30 million have been classified as microenterprises and brought under SMEDA’s scope on the instructions of the Prime Minister,” the statement said. “The draft of the Women Entrepreneurship Policy has also been prepared and will soon be submitted to the federal cabinet for approval.”

Other initiatives discussed during the meeting included the upcoming launch of a digital portal for women entrepreneurs and outsourcing of work related to SMEDA’s credit scoring model, SME subcontracting legal framework and export enhancement strategy.

SMEDA is also conducting a survey of 20 economic sectors in collaboration with the Pakistan Bureau of Statistics, the statement said.

"Small and medium-sized enterprises hold a vital place in the country’s development and economy," the prime minister said while addressing the gathering.

"The government is working on a priority basis to promote small and medium-sized businesses," he added.