DigiKhata and the Small and Medium Enterprises Development Authority (SMEDA) are working together to improve financial management practices among small and medium-sized enterprises (SMEs), with the Pakistan Fintech Network (PFN) facilitating the collaboration. The initiative focuses on encouraging businesses to adopt digital bookkeeping, maintain organised financial records and develop verifiable financial histories that can support their access to formal financing. PFN recently highlighted its role in connecting DigiKhata, one of its member fintech companies, with SMEDA, describing the collaboration as an example of how coordination between technology providers and public-sector institutions can support SME development. The initiative is intended to address a common challenge faced by smaller businesses: although they may have active commercial operations, many lack the structured documentation required by banks and other formal financial institutions when assessing financing applications. By promoting digital financial management tools, the collaboration seeks to help businesses improve the way they record transactions and present their financial position when approaching formal lenders.
SMEDA and DigiKhata formalised their arrangement through a Letter of Intent signed at SMEDA’s Lahore office on November 5, 2026. The agreement is focused on promoting digital financial management solutions among micro, small and medium enterprises that continue to depend on manual registers and traditional bookkeeping practices. Under the initiative, businesses will be encouraged to use digital tools to record transactions, manage accounts and maintain more accessible financial information. These records can provide a clearer picture of business activity, including sales, expenses and cash flows, which may help financial institutions evaluate enterprises seeking credit. DigiKhata provides digital bookkeeping and financial management services designed for smaller businesses, allowing them to maintain records of their commercial activities through a digital platform. The company’s involvement is expected to support SMEDA’s efforts to introduce more businesses to structured record-keeping practices and improve their readiness to engage with formal financial institutions. The arrangement does not itself constitute a lending facility or guarantee financing approvals for participating businesses.
The Pakistan Fintech Network’s involvement adds an industry coordination dimension to the initiative. According to its announcement, PFN facilitated the connection between its member DigiKhata and SMEDA as part of its efforts to bring fintech companies together with institutions working on financial inclusion and business development. The network said the collaboration would support digital bookkeeping, financial literacy and improved access to formal financing for Pakistani SMEs. DigiKhata also highlighted the importance of helping enterprises maintain organised records and build financial histories that can be assessed by financial institutions. The platform previously reported having one million active users and offers services supporting small businesses, including digital financial management and other financial services. SMEDA’s engagement with a technology provider reflects the importance of digital tools in addressing documentation gaps among smaller enterprises, particularly those without dedicated accounting departments or established financial reporting systems. However, the organisations have not publicly detailed the number of businesses expected to participate, the specific training or onboarding arrangements, or the timeline for implementation.
The collaboration comes as Pakistan works towards expanding formal financing for the SME sector. The government has set a target of increasing SME financing to Rs2.2 trillion and expanding the number of SME borrowers to 775,000 by June 2028. Achieving these objectives will require businesses to become better prepared to meet the documentation and financial assessment requirements of banks and other lending institutions. Digital bookkeeping can contribute to this process by helping entrepreneurs maintain consistent records and improve visibility into their business finances, while institutional support can increase awareness of the tools and practices available to them. PFN’s role in facilitating the DigiKhata–SMEDA connection also highlights the contribution fintech networks can make by linking technology providers with organisations that have established outreach among businesses. The initiative is expected to support enterprise formalisation and improve financial readiness, although its impact will depend on adoption among SMEs and the extent to which organised digital records help businesses meet lender requirements. Further details about implementation, participation and the scope of activities have not yet been announced.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
