LAHORE (special crosspondent) – SAARC Chamber of Commerce and Industry former President Iftikhar Ali Malik stated on Sunday that the government’s prudent economic policies have begun to yield positive results. Notably, lending to small and medium enterprises (SMEs) has surpassed the Rs1 trillion mark for the first time during the current fiscal year, marking an impressive 37 percent growth compared to the preceding period.

SME Financing as a Catalyst for Growth

In a statement issued today, Iftikhar Ali Malik remarked that the significant expansion in SME financing represents a landmark development for Pakistan’s economy. The sector remains the primary engine for employment, entrepreneurship, and innovation across the nation. This surge in credit availability demonstrates a rising level of confidence from financial institutions in the viability of SMEs, which in turn facilitates business expansion, the modernization of production facilities, and the generation of new job opportunities. Similar efforts to modernize industrial sectors, such as those discussed in recent initiatives to advance Pakistan’s digital printing and signage sectors, remain vital for long-term growth.

Policy Support and Regulatory Environment

Malik emphasized that SMEs constitute the backbone of the national economy and require sustained support, particularly through affordable financing, simplified taxation, and robust digital banking infrastructure. He urged financial institutions to further streamline their lending procedures and introduce flexible, bespoke products tailored to the needs of startups and emerging entrepreneurs. Addressing structural barriers, he noted that collateral requirements should be rationalized to ensure that viable enterprises with limited physical assets can successfully access formal credit channels.

Expanding the Tax Base through Formalization

The former president noted that enhanced financing could contribute significantly to broadening the national tax base by integrating more businesses into the documented economy. Improved access to institutional credit serves as a powerful incentive for entrepreneurs to maintain proper accounts and adopt modern digital payment systems. As Pakistan seeks to strengthen its fiscal position, such formalization efforts complement broader economic strategies, including the ongoing discussions surrounding DPM/FM Ishaq Dar’s diplomatic engagements and regional cooperation efforts, such as those monitored during the China-GCC High-Level Meeting held in Riyadh.