Pakistan, June 6 -- The State Bank of Pakistan (SBP) has started a major reform plan to make loans easier for small and medium businesses (SMEs). The goal is to help SMEs access finance in a simple, fair, and lasting way. The central bank wants to remove hurdles that keep small businesses from getting much-needed funds from banks.

Currently, SMEs face major issues despite supporting Pakistan's economy in big ways. These businesses create 80% of non-farm jobs and make up 40% of the GDP. Yet, they receive just 6% of private bank loans. The SBP now wants to change this by improving loan rules and helping banks use modern tools and tech.

The timing is crucial, as job growth has been slow, with only 1.7% average economic growth in the past t...