SMEDA, SBP explore cluster-based lending for SMEs

Business Recorder reported that SMEDA and the State Bank of Pakistan held a seminar in Lahore on cluster-based lending, aiming to find workable ways to widen credit for small and medium businesses. Representatives of financial institutions, industry bodies and partner organisations took part, and the discussion centred on improving formal finance access and tighter links with the banking sector. Dr Muhammad Saleem of the SBP gave the keynote, and the cluster studies were then presented in detail.

SMEDA chief executive Nadia Jahangir Seth argued that research and sector-specific findings must be turned into lending products that banks can sustain commercially. In her view, a clearer picture of each SME cluster could help lenders design financing suited to business needs. The seminar also covered the SME Credit Scoring Services Model, which SMEDA is building as a uniform tool for judging borrower risk.

Raja Hassanien Javaid, SMEDA general manager, reported that financing for small and medium firms climbed 30.5 per cent over the year, reaching Rs901.6 billion by June 2026, up from Rs691 billion. The number of SME borrowers grew 15.18 percent to 318,585 businesses. He added that SMEs generate roughly 40 percent of GDP and about 30 percent of exports. Participating banks trialled the model via the Pakistan Banks' Association, and it is designed as a supplementary assessment aid for lenders.