The Lahore Chamber of Commerce and Industry (LCCI) took a significant step to empower small and medium enterprises (SMEs) by organizing a dedicated SME Finance and Banking Expo on Thursday. The day-long event was designed to provide direct access to banking facilities, various financing schemes, and tailored financial products for the business community.
Major Banks and Businesses Connect at Expo
The expo witnessed participation from nearly all major commercial banks, Islamic banks, and financial institutions operating across Pakistan. Banks set up dedicated stalls where a large number of LCCI members gathered to obtain detailed information. The focus was on SME-focused financing products, refinance schemes, credit facilities, Islamic finance models, and the latest digital banking solutions.
The primary goal of the event was to bridge the persistent gap between financial institutions and businesses by improving awareness of the available financial options. The expo was jointly inaugurated by a high-profile group including LCCI President Faheemur Rehman Saigol, Executive Director of the 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.
Call for Reform and Greater Financial Inclusion
Addressing the ceremony, LCCI President Faheemur Rehman Saigol highlighted the chamber's vast network, representing over 48,000 member companies, making it the largest in the country. He emphasized that sustainable economic growth and regional competitiveness are impossible without a strengthened SME sector. Saigol cited the examples of economic powerhouses like China, Vietnam, Bangladesh, Japan, and Taiwan, which achieved remarkable growth by nurturing their small and medium enterprises.
He revealed a critical statistic: private sector financing in Pakistan remains critically low at around 6.5% of GDP. Furthermore, the number of SME borrowers is only about 295,000, with outstanding SME financing around Rs686 billion, which he stated is far below the sector's potential and indicates large untapped opportunities.
Saigol identified strict collateral requirements as a major hurdle for small businesses despite strong market potential. He urged banks to shift their focus towards evaluating 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 simplified procedures and dedicated service desks.
State Bank's Commitment and Future Vision
SBP Executive Director Syed Basit Ali reassured attendees that SMEs are a top priority for both the government and the central bank. He informed the audience that new principle-based prudential regulations have been introduced to encourage cash-flow based lending. Additionally, the SBP is working with international institutions to develop more viable financial products for the sector.
Ali also announced progress on gender inclusion, stating that the targets under the Banking on Equality policy have been met. He confirmed that work has now begun on the next phase, Vision 2.0, to further advance financial inclusion.
The event was also attended by Convener of the SME Banking Expo Syed Salman Ali, CEO of EXIM Bank Shahbaz Syed, members of the LCCI Executive Committee, senior bank officials, prominent business leaders, and women entrepreneurs, underscoring the collective effort to revitalize the SME landscape in Pakistan.
