NBP steps up support for SMEs with expanded and streamlined financing

The initiative aligns with SBP reforms to unlock SME financing through regulatory overhaul and expanded credit access

KARACHI, June 25— In a challenging economic environment marked by soaring energy prices, persistent inflation, and high interest rates, the National Bank of Pakistan (NBP) has stepped up to ease financing hurdles for Small and Medium Enterprises (SMEs) by launching an easy financing scheme offering loans up to Rs200 million.

The move comes at a critical time when SMEs, which contribute nearly 40% to Pakistan’s GDP and employ around 80% of the non-agricultural workforce, are grappling with rising costs and tighter liquidity.

SME financing program is designed to support a wide range of sectors, with a strong focus on agriculture, manufacturing, food processing, handicrafts, textiles, and technology.

By providing affordable credit with low mark-up rates, quick processing, and minimal paperwork, NBP aims to help these enterprises purchase raw materials and manage daily expenses without being strangled by costly borrowing. The bank also offers personalized assistance through dedicated staff to guide applicants smoothly through the process.

This initiative aligns with the State Bank of Pakistan’s (SBP) recent reforms aimed at unlocking SME financing by overhauling prudential regulations and encouraging banks to expand credit access.

The SBP’s directives, issued earlier in 2025, have already led to a decline in benchmark interest rates from 22% to 11%, improving lending conditions for SMEs. The central bank’s Vision 2028 targets doubling SME financing to Rs1.1 trillion within five years, recognizing the sector’s vital role in job creation, export growth, and economic stability.

However, SMEs continue to face headwinds from inflationary pressures and high energy costs that squeeze profit margins and increase operational risks. In this context, NBP’s easy financing scheme provides a timely lifeline, enabling businesses to stay afloat and invest in growth despite macroeconomic challenges. The facility’s availability across NBP’s extensive branch network further enhances accessibility for entrepreneurs nationwide.

As Pakistan navigates a difficult economic landscape, such targeted financial support for SMEs is crucial to sustaining economic activity, safeguarding livelihoods, and fostering inclusive growth amid rising costs and tightening credit conditions.