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Financing Facilities Offered to Lift KP’s SME Sector

Wednesday, the Khyber Pakhtunkhwa Cabinet authorized a PKR 6 billion subsidy scheme for Small and Medium Enterprises (SMEs) under the Industrial Policy 2020, according to media sources from Peshawar (January 5).

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Chief Minister (CM) Mahmood Khan presided over the cabinet meeting, which was attended by the chief secretary, ministers, and administrative secretaries. According to Special Assistant to Chief Minister (SACM) on Information Barrister Mohammad Ali Saif, the subsidy scheme will have two components: Raast Working Capital Financing Scheme and Raast Modernisation Financing Scheme for SMEs. He continued by stating that the program was designed to facilitate SME access to loans.

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According to the CM’s assistant, the financial facility will offer liquidity to support businesses and related jobs, as well as stimulate the expansion of existing and new businesses. Through 2026, the State Bank of Pakistan (SBP) would provide PKR 1.2 billion in yearly initiative disbursements. The funding for SMEs would be capped at a maximum of 2 million PKR and a minimum of 1 million PKR. The effort will be carried out by the Bank of Khyber in conjunction with the Department of Industries.

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