Deputy Governor State Bank of Pakistan (SBP), Saleemullah on Thursday has reaffirmed the central bank’s objective to double the financing of Small and Medium Enterprises (SMEs) to Rs1100 billion over the next five years under the Vision-2028 and urged the banks to embrace SME finance as a core business line to boost MSME growth. He was addressing a seminar organized by SBP to commemorate UN Micro, Small and Medium Enterprises (MSME) Day under this year’s theme, ‘MSME Finance: Catalyst for Inclusive Growth’ that underscores the importance of financial support in unleashing the potential of SMEs. The SBP joined the global community in celebrating the MSME Day by highlighting the pivotal role these enterprises play in driving economic growth, fostering innovation, and creating jobs. The event was attended by Presidents and CEOs of banks, Development Finance Institutions, senior SBP management, government officials, and representatives of trade bodies. Deputy Governor SBP Saleemullah, in his keynote address, stated that SMEs were the lifeline of the country’s economy as those were providing employment to 80 percent of the non-agricultural workforce, contributing 40 percent to GDP and accounting for more than 25 percent of total export earnings. As part of its Vision 2028, SBP aims to double SME financing to Rs1,100 billion over the next five years, with Rs100 billion to be added to the SMEs’ outstanding portfolio by the end of June 2025, he said adding that SBP’s focus is on creating an enabling environment where SME finance can grow enabling SMEs to thrive and contribute to sustainable economic growth. The Deputy Governor called on all banks to play their part in promoting SME finance and surpass the Rs100 billion estimated increase for FY 2024-25. To further support SME finance, the SBP has proposed the government to provide risk coverage to banks on their fresh financing to SMEs, whereby 20 percent and 10 percent first loss coverage would be provided to banks’ fresh exposures against SEs and MEs respectively, he said and added that the necessary allocations for FY25 have been made in the FY25 budget. Saleemullah urged all the stakeholders to renew their commitment to creating a supportive environment where small and medium-sized enterprises can flourish, thereby driving economic growth and innovation across the nation. President National Bank of Pakistan Rehmat Ali Hasnie addressing to the seminar highlighted the inter connectivity of SME and agriculture sector underscored the need of focusing on both the sectors as these sectors had potential to become drivers of the economic growth in the country. President Habib Bank Limited Muhammad Nasir Saleem stressed on the need of focusing on SME and Microfinance to bolster economic growth and suggested to strengthen monitoring and follow up mechanism, upgrade KPI and balancing rates. Besides, an event was also held at the Banking Hall of SBP on the MSME Day to raise awareness about the significant contributions of MSMEs to the country’s economy. Throughout the day, commercial banks and SMEs showcased their products. The visitors took keen interest and praised this initiative of the banking industry and SMEs. Deputy Governor Saleemullah and other dignitaries visited the stalls and felicitated the organizers for displaying valuable products on the MSME day.