Govt Urges SBP to Fix SME Credit Crunch
The government has urged the State Bank to resolve the SME credit crunch. Small and medium enterprises continue to struggle as they search for financing. They need fresh funds to keep their operations stable and to grow.
Business representatives again called for a shift to a fixed tax system. They believe this approach offers clarity and fewer complications. In addition, they argued that high energy costs make it difficult to remain competitive.
Small businesses have faced challenges for years. Large companies often receive greater access to power circles and policy attention. As a result, smaller units feel left out and unable to secure fair opportunities. Experts warn that this trend is damaging an important pillar of any modern economy.
The government says it recognises the value of SMEs. It plans to support them through reforms, more bank credit, and steps that increase export competitiveness. These measures aim to create a more inclusive and balanced business environment.
SME Voices and Government Response
Special Assistant to the Prime Minister Haroon Akhtar Khan met the Sialkot SME Cluster on Saturday. Senior officials from the Industries and Production Ministry and Smeda also joined the meeting. They discussed long standing issues faced by micro, small, and medium enterprises.
Participants highlighted high electricity tariffs and limited banking support. They said these challenges limit growth and push many businesses into survival mode. For example, the surgical instruments sector continues to face export hurdles. It lacks an accreditation lab, which global buyers now consider essential.
Haroon Akhtar assured them that the government is working on a fixed tax regime. He also announced an incentive plan linked to power consumption. Under this plan, electricity rates would fall as industrial units use more units. Therefore, businesses could lower their production costs.
To support the surgical tools industry, he directed Smeda and the Trade Development Authority to prepare a strategy for new accreditation facilities. He stressed the need to upgrade existing labs so they meet global certification standards.
Haroon Akhtar also highlighted the huge export potential of Sialkot’s SMEs. However, he acknowledged that limited credit access remains a major barrier. He instructed Smeda and the State Bank to resolve this issue on priority. He added that small businesses must evolve into strong export driven enterprises. Smeda will now prepare a detailed plan and present progress in the next review meeting.
