As Pakistan enters the New Year with a renewed focus on economic stability and growth, the Small and Medium Enterprises Development Authority has reaffirmed its commitment to strengthening the country’s SME ecosystem. The authority aims to advance access to finance, encourage formalization, enhance digital training and improve export readiness, positioning small and medium enterprises as a central pillar of economic resilience.
An official at SMEDA said the outgoing year was marked by institutional reforms, international engagement and targeted initiatives designed to create an enabling business environment for SMEs, with particular emphasis on women entrepreneurs and startups. According to the official, SMEDA is now preparing to scale up activities and implementation in the year ahead to further empower the sector.
Operating under the guidance of the Ministry of Industries and Production and in line with Prime Minister Shehbaz Sharif’s vision of building a more competitive and resilient economy, SMEDA undertook several initiatives over the past year to bridge the financing gap, boost export preparedness, promote women entrepreneurship and engage SME clusters across the country to address their challenges.
Access to finance remains one of the most persistent obstacles faced by SMEs in Pakistan. To address this, SMEDA played a facilitative role by acting as a bridge between small businesses and financial institutions. The authority undertook multiple initiatives to improve financial literacy and ease access to funding, while also forging partnerships with microfinance institutions such as Akhuwat, the Pakistan Microfinance Network and Mobilink Microfinance Bank Limited. These collaborations were aimed at connecting entrepreneurs with tailored financial products and advisory support.
Export readiness emerged as another key area of focus. To help SMEs scale up and compete internationally, SMEDA launched several initiatives aimed at improving compliance with global standards. In collaboration with the Punjab Information Technology Board, the authority recently introduced the SME Certification and International Accreditation Grant Program. The initiative is designed to help entrepreneurs meet international quality requirements, reduce certification costs and improve access to global markets. According to the official, the program is being implemented transparently, with applications processed on a first-come, first-served basis.
Women entrepreneurship remained a prominent pillar of SMEDA’s agenda throughout the year. The authority played a central role in developing Pakistan’s first National Women’s Entrepreneurship Policy and complemented this effort with targeted measures focused on capacity building, digital inclusion, financial access and market linkages. These initiatives are intended to enable women entrepreneurs to contribute more actively to national economic objectives.
In this context, SMEDA partnered with the Federation of Pakistan Chambers of Commerce and Industry to mark International Women Entrepreneurship Day. The event drew participation from the heads of 21 women chambers of commerce and industry from across the country and was described as a strong demonstration of the government’s resolve to address barriers faced by women-led businesses. SMEDA and FPCCI also hosted Sindh women chambers to highlight regional issues and explore solutions with government support.
Strengthening the data backbone of SME policymaking was another milestone. At DataFest 2025, SMEDA signed a memorandum of understanding with the Pakistan Bureau of Statistics to enhance data sharing and promote evidence-based planning. The collaboration is expected to support more informed decision-making and targeted interventions across SME-related sectors.
SMEDA’s international engagement also expanded during 2025. In a landmark initiative, the authority hosted the first virtual session of the D-8 SME Governmental Bodies, bringing together delegates from Azerbaijan, Bangladesh, Indonesia, Malaysia, Nigeria, Pakistan and Türkiye. Participants exchanged views on SME-led growth and regional integration. In parallel, SMEDA developed new partnerships with Azerbaijan, Belarus, Uzbekistan and Saudi Arabia to support SME internationalization.
The authority represented Pakistan at the launch of OIC-SMENET and the Halal Food Expo in Baku, highlighting the country’s SME potential within the Islamic world. It also set up a national stall at BIOPROM 2025 in Russia to showcase Pakistani SME products and explore opportunities in biotechnology-related sectors.
In October, SMEDA engaged with a Chinese firm to explore prospects for electric vehicle subcontracting in Pakistan, aiming to integrate local SMEs into emerging global EV value chains. The initiative aligns with the government’s goals of industrial diversification, technology transfer and green growth.
Looking ahead, SMEDA is preparing to implement a three-year business plan being finalized in consultation with global consultant AT Kearney under the supervision of the Ministry of Industries and Production. Once approved by the prime minister, the plan aims to drive productivity, boost exports, expand women’s participation and increase SME contribution to GDP through simplified regulations, digital onboarding and climate-resilient growth.
SMEDA has also been tasked with organizing the Made-in-Pakistan SME Cluster Showcase Expo 2026 in January, which will highlight SME clusters from across the country, offer market exposure and investment linkages, and host policy discussions and awards recognizing excellence in the SME sector.
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