Government’s Support Programme for SMEs
A Cost-Sharing Grant Sharing Scheme


The economic vitality and growth potential of Pakistan is positively influenced by the growth of its Small and Medium Enterprises (SMEs), as most of the employment opportunities are created by them. They are considered to be the backbone of any developing economy, and this certainly holds true for Pakistan.


The Government of Pakistan has embarked on a major program to assist in the development of the SME sector. As an integral part of the overall program, SME Business Support Fund (BSF) has been created by the Ministry of Finance as a not-for-profit company under Companies Ordinance 1984 with the support of Asian Development Bank. The pilot program is currently planned to last through June 2009. BSF has its head office in Lahore.

The objectives of BSF are to assist in increasing the profitability and competitiveness of SMEs. BSF provides SMEs with free grants up to Rs 1.8 Million for purchasing Business Development services. The grant has no interest rate, mark-up or profit sharing and does not have to be paid back. Funds are given on a cost-sharing basis i.e., 50% of the project value has to be contributed by BSF and 50% by the SME. Only those tax-paying SMEs are eligible to get this support whose permanent employees are less than 250, annual turnover is less than Rs. 25 Crore and has been operating for at least 3 years. The funds are not given for capital expenditures or running finance.


BSF has approved projects worth Rs. 95 Million of over 180 SMEs across Pakistan, in almost every sector, since the start of its operations in August 2006. The funds have been given for short-term consultancies in strategy management, financial management, production improvement, IT, HR development, certifications, new product development, packaging, quality improvement, export development, technology up-gradation, business planning and marketing.

BSF assists applicants through the processes of identifying critical problem areas and selecting business development solution providers, and provide support throughout the grant application and administrative processes. BSF team members regularly visit various parts of the country and are available to support and meet clients in their own cities. Further information about BSF is available on their website (www.bsf.org.pk).