SMEConnect Success Must Be Measured by Loans Disbursed and New Borrowers: Mian Zahid Hussain

Business leader Mian Zahid Hussain has welcomed the State Bank of Pakistan’s (SBP) launch of SMEConnect, calling it an important step towards improving access to finance for small and medium-sized enterprises (SMEs).

He said the platform’s success should depend on measurable results. These include loans actually disbursed, businesses receiving financing for the first time and faster access to credit.

Hussain said transparent records and effective monitoring would matter only if small businesses received timely capital. This support should help them expand production and strengthen their operations.

SMEConnect to Handle Financing Applications

The SBP launched SMEConnect on October 29. Under the central bank’s instructions, banks will receive all SME financing applications through the digital system from November 1, 2026.

Bank branch staff will guide applicants and help them submit applications online.

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Hussain said the platform would allow businesses to track applications and understand reasons for rejection. This could improve transparency and help identify unnecessary delays.

However, he stressed that banks must also improve their internal procedures. Faster application processing must lead to timely decisions and actual loan disbursements.

SME Financing Stands at Rs1,148 Billion

Hussain said outstanding SME financing reached Rs1,148 billion as of October 23, 2026.

Small enterprises accounted for Rs538 billion, representing approximately 46.9% of the total.

He said access to finance remained essential for higher production, business expansion and job creation. He described the current financing position as a baseline for measuring SMEConnect’s future performance.

Policymakers should use subsequent data to identify which businesses and regions benefit from the facility.

Borrower Numbers Must Rise

The number of SME borrowers stood at approximately 350,862 at the end of September, Hussain said.

The Access to Finance Programme targets 775,000 SME borrowers by June 2028. Reaching that goal will require approximately 424,138 additional borrowers.

Hussain said banks must extend financing beyond their existing customers. New businesses, small industries and women-led enterprises should also benefit.

He also called for greater support for businesses in underserved districts. A broader base of business activity, he said, would support more balanced and sustainable economic growth.

Calls for Quarterly Bank Performance Reports

Hussain proposed that the SBP publish quarterly performance reports for individual banks.

He said the reports should disclose:

• Average time taken to decide financing applications.
• Number of loans approved.
• Total amount actually disbursed.
• Reasons for rejecting applications.
• Number of first-time borrowers.
• Financing provided to women-led businesses.
• Lending to smaller cities and disadvantaged districts.

He also stressed the importance of monitoring loan repayments and credit quality. Wider access to finance must remain sustainable and ensure that banks use their resources for productive activities.

Business Support Needed to Expand Access

Hussain urged SMEDA, banks, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and trade organisations to work together.

These institutions should help small businesses prepare accounts, maintain financial records and complete loan applications.

He also called for guidance in local languages, trained bank staff and simpler documentation requirements. These measures, he said, would help more businesses use the digital facility.

Banks should assess borrowers through business income, cash flows and repayment capacity, rather than relying only on conventional requirements.

Hussain said timely working capital and machinery financing could help small businesses increase production and create jobs. It could also enable them to supply more value-added products to export markets.

He said the government, banks and business community shared responsibility for making SMEConnect an effective tool for economic growth.