PM's adviser Haroon voices concern over small and medium enterprises loans

Prime Minister’s adviser Haroon Akhtar Khan said banks were not providing loans from the Rs2.2 trillion SME financing fund, Dawn reported on October 25. The fund’s planned size was raised from Rs1.1tr to Rs2.2tr by 2028 following a directive from Prime Minister Shehbaz Sharif.

At a consultation in Islamabad, Khan urged regulators, including the SBP and SECP, to encourage smaller loans, leasing and insurance for small businesses. SME representatives cited difficulties securing credit, working capital and expansion finance, while also calling for standard loan forms, clearer document lists and communication about lending decisions. Participants said banks should assess viable borrowers using cash flows and documented transactions, alongside permissible alternative security.