Karachi School of Business and Leadership (KSBL) and JS Bank have come together to host a high-powered roundtable on shaping the future of SME financing in Pakistan. The event brought policymakers, financial experts, and academics under one roof to explore how small and medium enterprises can gain better access to much-needed financial support.
With SME loans hitting an all-time high of PKR 691 billion in FY25, momentum is building, but challenges remain. According to recent data, only 2.1% of firms in Pakistan currently have access to bank loans or credit lines, a stark contrast to the South Asian average of 31.6%. This financing gap continues to limit the growth potential of one of Pakistan’s most vital economic sectors.
The roundtable emphasized the need for more than incremental change. Discussions revolved around stronger credit assessment frameworks, market-based solutions, and digital distribution channels to make financing more inclusive. A major highlight was the soft launch of a forthcoming policy brief and SME financing toolkit aimed at guiding entrepreneurs through financial services and providing insights for institutions and policymakers.
Speaking at the event, KSBL Dean and Rector, Dr. Ahmad Junaid, said Pakistan’s SME sector is the “heartbeat of our economy” but requires systemic reforms to reach its potential. Atif Salim Malik, COO of JS Bank, added that SME financing is not just about increasing loan volumes, but building an ecosystem where small businesses can thrive sustainably.
The dialogue addressed both supply-side barriers—like information gaps and limited credit assessment tools—and demand-side hurdles including lack of formal documentation and seasonal cash flow challenges. While government-backed schemes such as the SME Asaan Finance Scheme (SAAF) have created momentum, participants agreed that long-term progress depends on sustainable, market-led approaches supported by innovation, regulation, and collaboration.
This joint initiative by KSBL and JS Bank underlines the urgent need for collective action to strengthen SME financing in Pakistan, paving the way for a stronger entrepreneurial ecosystem and a more resilient economy.
