Karachi, Pakistan, August 29, 2025 – Karachi School of Business and Leadership (KSBL) and JS Bank jointly hosted a strategic roundtable to address the opportunities and challenges shaping Pakistan’s SME financing landscape.
Event Overview: Fostering Collaboration for Growth
The session brought together key representatives from the State Bank of Pakistan, SMEDA, National Incubation Center, private financial institutions, and academia to explore pathways for enabling broader financial access for small and medium enterprises (SMEs).
The SME Financing Gap: Progress and Persistent Challenges
Despite recent progress, including SME loans reaching an all-time high of PKR 691 billion in FY25, structural barriers continue to hinder SMEs from fully accessing formal finance. A stark gap was highlighted: only 2.1% of firms in Pakistan report having access to bank loans or lines of credit, compared to the South Asian average of 31.6%.
Key Discussion Themes: Moving Beyond Incremental Change
The discussion emphasized the need to move beyond incremental improvements toward comprehensive reforms. Key themes included:
- The necessity for stronger credit assessment frameworks.
- The development of market-based solutions.
- The adoption of technology-driven distribution channels.
Discussions spanned both supply-side constraints (e.g., information gaps, distribution challenges, limited credit assessment tools) and demand-side hurdles (e.g., lack of formal documentation, seasonal cash flow pressures).
Participants acknowledged the role of government schemes like the SME Asaan Finance Scheme (SAAF) and the Refinancing Facility for Modernization of SMEs in creating initial momentum. However, it was emphasized that long-term progress will depend on sustainable, market-led solutions supported by enabling regulatory frameworks and technological innovation. Proposed interventions included credit guarantees and greater data availability for risk assessment.
Launch of Strategic Resources: Policy Brief and Toolkit
The roundtable also marked the soft launch of a forthcoming policy brief and SME financing toolkit. These resources are designed to guide small businesses through the process of securing financial services and to provide actionable insights for policymakers and financial institutions.
Leadership Perspectives
Dr. Ahmad Junaid, Dean and Rector of KSBL, stated:
“Pakistan’s SME sector represents the heartbeat of our economy, yet persistent financing gaps threaten to stunt our national growth potential. This roundtable reflects our commitment to bridging the gap between academic research and practical policy solutions. Only through collaboration between educational institutions, the financial sector, and policymakers can we unlock the full potential of our entrepreneurial ecosystem.”
Atif Salim Malik, Chief Operating Officer of JS Bank, added:
“While SME lending volumes have shown promising growth, the opportunity ahead remains immense. As one of the largest SME lenders in the country, JS Bank recognizes that leadership is not just about size. It’s about aligning the risk-reward framework and simplifying processes for small businesses. For us, SME financing goes beyond expanding loan books. It’s about nurturing an ecosystem that enables the sustainable growth of small and medium enterprises.”
