Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan has reaffirmed the government's commitment to strengthening the micro, small and medium enterprises (MSME) sector, describing it as the backbone of the national economy and a central pillar of the economic transformation agenda. Addressing the World MSME Day 2026 ceremony, the PM aide remarked that every great economy is built upon the courage, resilience and innovation of entrepreneurs.
MSMEs: Largest Productive Force
Khan emphasised that Pakistan's approximately 7.14 million MSMEs constitute the country's largest productive force, contributing nearly 40% of gross domestic product (GDP), 30% of exports and providing employment to more than 80% of the non-agricultural workforce. He pointed out that Pakistan is pursuing an ambitious economic reform agenda anchored in industrialisation, innovation, export-led growth and private-sector development.
MSME development occupies a central place in this national vision aimed at building an economy that is export-oriented, innovation-driven, globally competitive and inclusive. The special assistant highlighted that the future of global competitiveness will be shaped by artificial intelligence, digital transformation and innovation, stressing that nations embracing technological advancement and entrepreneurship will emerge as future economic leaders.
Enabling Business Environment
Khan said the government is creating an enabling business environment that rewards enterprise, supports innovation and provides equal opportunities to entrepreneurs across all regions of the country. Sharing progress on access to finance, he stated that according to the State Bank of Pakistan, SME financing increased from Rs584 billion to nearly Rs854 billion as of March 31, 2026, reflecting an annual growth of 46%. Similarly, the number of SME borrowers rose 53%, exceeding 312,000 businesses. He described these achievements as evidence of growing confidence in Pakistan's entrepreneurial ecosystem.
Rs30 Billion SME Development Fund
The PM aide announced that the government has established a dedicated Rs30 billion SME Development Fund to support innovation and transformational initiatives aimed at enhancing enterprise competitiveness, expanding exports and accelerating sustainable economic growth. Highlighting the pivotal role of the Small and Medium Enterprises Development Authority (Smeda), Khan said the organisation is implementing a three-year business plan focused on improving access to finance, promoting business formalisation, facilitating international certifications, strengthening export readiness, accelerating digital transformation and integrating Pakistani enterprises into regional and global value chains.
Women Entrepreneurship
Khan underscored the government's commitment to women entrepreneurship, stating that women are making remarkable contributions to Pakistan's economy by creating businesses, generating employment and fostering innovation. He noted that Pakistan's first-ever National Women Entrepreneurship Policy and Action Plan, developed by Smeda, is expected to benefit more than 3.2 million women entrepreneurs nationwide through improved access to finance, technology, markets and business development services.
