PM Targets Rs2.2tn SME Loans Amid Alibaba Partnership

ISLAMABAD, October 12, 2026: Prime Minister Shehbaz Sharif has directed authorities to double the total volume of financing available to Pakistan’s small and medium enterprises (SMEs) from Rs1.1 trillion to Rs2.2 trillion by 2028, as the federal government moves to strengthen entrepreneurship, improve access to banking facilities and expand economic opportunities nationwide.

Chairing a high-level meeting on the Small and Medium Enterprises Development Authority (SMEDA) in Islamabad on Monday, the Prime Minister emphasized that the business community forms the backbone of any country’s economy and that Pakistan’s SME sector holds enormous potential to accelerate national economic growth.

According to a statement issued by the Prime Minister’s Office Media Wing, the government is pursuing institutional reforms within SMEDA to empower entrepreneurs, particularly those operating in less-developed regions.

PM Directs Expansion of Business Financing

The Prime Minister instructed relevant authorities to increase overall SME financing to Rs2.2 trillion by 2028, effectively doubling the Rs1.1 trillion benchmark cited during the meeting.

He directed SMEDA to formulate a comprehensive strategy for informing prospective entrepreneurs about the procedures and requirements for obtaining business loans.

The proposed strategy will focus on helping more individuals understand available financial support mechanisms, access banking services and establish viable businesses.

The Prime Minister also called for effective public awareness initiatives to encourage entrepreneurship and expand participation in economic activities.

The new directive represents a higher financing ambition than the previously publicized government target of Rs2 trillion by June 2028. The revised Rs2.2 trillion objective was announced during Monday’s meeting, although the press release did not provide a detailed implementation timetable or revised lending framework.

Special Focus on Underserved Regions

Highlighting the importance of inclusive economic development, Shehbaz Sharif said providing business opportunities in less-developed areas could reduce migration towards major cities.

He observed that empowering residents to establish businesses in different sectors would help generate local economic activity and contribute to regional prosperity.

The Prime Minister stressed that expanding entrepreneurship beyond established commercial centres was essential for balanced national development.

Under the government’s approach, SMEDA will work to extend entrepreneurial support and institutional services to individuals across Pakistan, including those who previously had limited access to business guidance or formal financing channels.

Sector-Specific Feasibility Studies in Local Languages

The Prime Minister directed SMEDA to commission feasibility studies for establishing small and medium enterprises in various economic sectors.

He instructed that these studies be prepared by relevant industry experts to provide prospective investors and entrepreneurs with practical guidance.

Importantly, the studies will also be made available in local languages, enabling individuals from different linguistic and educational backgrounds to better understand business opportunities.

The initiative is intended to improve access to information on establishing enterprises and assessing their commercial viability.

SMEDA to Become Central Business Facilitation Platform

During the meeting, officials briefed the Prime Minister on reforms aimed at transforming SMEDA into a centralized support platform for aspiring and existing entrepreneurs.

According to the briefing, the authority is being restructured to provide business training and facilitate connections between entrepreneurs and banking institutions for financial assistance.

The proposed framework will help individuals obtain information, develop their business capabilities and navigate the process of seeking financing.

Officials also informed the meeting that SMEDA offices are being established across the country to strengthen institutional outreach and provide assistance to entrepreneurs in different regions.

AI-Powered Helpline Planned for Entrepreneurs

A significant component of the modernization programme involves establishing an artificial intelligence-based helpline to assist citizens seeking information about business development.

The planned service will provide guidance in local languages, allowing entrepreneurs to obtain information through a more accessible digital support system.

Officials said the helpline is intended to improve public access to business-related information, particularly for people who face language or geographical barriers.

The meeting was also informed that reforms are underway to make the SME Digital Portal more efficient and user-friendly.

These digital initiatives form part of the government’s wider efforts to modernize business support services and improve access to entrepreneurial resources.

Alibaba Partnership to Train 10,000 SMEs

Officials also briefed the Prime Minister on the memorandum of understanding signed between SMEDA and international e-commerce company Alibaba.

Under the agreement, 10,000 Pakistani small and medium enterprises are expected to receive training over a two-year period, helping entrepreneurs improve their understanding of digital commerce and international business opportunities.

The partnership was formalized during the Prime Minister’s visit to China in May 2026.

Alibaba.com has separately outlined plans to support Pakistani businesses through AI-enabled digital trade training and the onboarding of 2,000 SMEs onto its international e-commerce platform.

The collaboration is intended to strengthen the digital capabilities of Pakistani enterprises and help them connect with overseas buyers.

Government Reviews Progress on SME Reforms

During the meeting, the Prime Minister received a detailed briefing on institutional reforms at SMEDA and ongoing initiatives intended to strengthen the SME sector.

Officials outlined efforts to expand financing awareness, establish regional offices, improve digital services and strengthen training opportunities.

The Prime Minister reiterated that empowering entrepreneurs and expanding economic opportunities across the country remain central objectives of SMEDA’s reform agenda.

The meeting was attended by federal ministers Rana Tanveer Hussain, Jam Kamal Khan, Dr Musadik Masood Malik, Ahad Khan Cheema, Attaullah Tarar and Chaudhry Salik Hussain.

Minister of State for Finance Bilal Azhar Kayani, Adviser to the Prime Minister Haroon Akhtar Khan, Chairman Prime Minister’s Youth Programme Rana Mashhood Ahmad Khan and senior officials of relevant departments also participated.

The announced initiatives remain subject to implementation, with their eventual impact depending on expanded lending, effective institutional outreach and the accessibility of support services for aspiring entrepreneurs.

Source: Prime Minister’s Office, Media Wing, Press Release No. 425/2026, dated October 12, 2026. Additional background: Radio Pakistan and Alibaba.com.