SME financing gaps highlighted at Lahore expo

Chamber urges easier credit, cash-flow lending and support for women entrepreneurs

LAHORE:

The Lahore Chamber of Commerce and Industry on Thursday organised the SME Finance and Banking Expo to provide small and medium enterprises direct access to banking facilities, financing schemes and financial products. According to a statement, the day-long event saw participation from almost all major commercial banks, Islamic banks and financial institutions operating in the country.

Banks set up dedicated stalls where a large number of LCCI members visited to obtain information on SME-focused financing products, refinance schemes, credit facilities, Islamic finance models and digital banking solutions. The expo aimed to bridge the gap between banks and businesses by improving awareness of available financial options.

The event was jointly inaugurated by LCCI President Faheemur Rehman Saigol, Executive Director State Bank of Pakistan (SBP) Syed Basit Ali, SBP Chief Manager Tariq Riaz, LCCI Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi and SAARC Chamber Vice President Mian Anjum Nisar. Convener SME Banking Expo Syed Salman Ali, CEO EXIM Bank Shahbaz Syed, members of the LCCI Executive Committee, senior bank officials, business leaders and women entrepreneurs were also present.

Addressing the ceremony, Saigol said the Lahore Chamber represents more than 48,000 member companies and is the largest chamber in the country. He said sustainable economic growth and regional competitiveness were not possible without strengthening the SME sector. He cited examples of countries including China, Vietnam, Bangladesh, Japan and Taiwan, which achieved growth through small and medium enterprises.

Saigol said private sector financing in Pakistan remains low at around 6.5% of GDP. He noted that the number of SME borrowers stands at about 295,000, while outstanding SME financing is around Rs686 billion, far below potential. He said these figures indicate large untapped opportunities.

He pointed out that strict collateral requirements remain a major hurdle for small businesses despite strong market potential. He urged banks to focus on cash flows, business models and market value, and to expand low-collateral financing schemes. He also called for special support for women-owned businesses through simpler procedures and dedicated desks.

SBP Executive Director Syed Basit Ali said SMEs are a top priority for the government and the central bank. He said new principle-based prudential regulations have been introduced to encourage cash-flow based lending, while work is underway with international institutions to develop viable products. He added that women's inclusion targets under the Banking on Equality policy have been achieved and work has begun on Vision 2.0.