The funding gaps of SMEs were highlighted in the Lahore report

The Lahore Chamber of Commerce and Industry on Thursday organized the SME Finance and Banking Expo to provide small and medium enterprises with instant access to banking facilities, financing programs and financial products. According to a statement, the day-long event was attended by almost all major commercial banks, Islamic banks and financial institutions operating in the country.

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

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

Addressing the ceremony, Saigol said that the Lahore Chamber represents more than 48,000 member companies and is the largest chamber in the country. He said that sustainable economic growth and regional competitiveness are not possible without strengthening the SME sector. He cited examples of countries such as 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 around 295,000, while the outstanding SME financing is around Rs 686 billion, well below the potential. He said these figures show great untapped opportunities.

He pointed out that strict collateral requirements remain a significant barrier for small businesses despite strong market potential. He urged banks to focus on cash flow, business models and market value and expand low-collateral financing programs. He also called for special support for women-owned businesses through simpler procedures and special offices.

SBP Executive Director Syed Basit Ali said that SMEs are a top priority for the government and the central bank. He said new principles-based prudential regulations had been introduced to encourage cash flow-based lending, while work was underway with international institutions to develop sustainable products. He added that the goals of women’s inclusion in the bank’s equality policy have been achieved and work on Vision 2.0 has begun.