KARACHI: The State Bank of Pakistan (SBP) has launched a Challenge Fund for technology adoption and digitalisation of small and medium enterprises (SMEs).

The central bank said it has been taking measures to help banks improve access to finance for the SME sector.

According to a circular issued onSaturday, fund will support innovative solutions for SME banking.

This fund, in the form of a grant, will help banks develop innovative technological solutions to cater to the banking needs of the SME sector.

The central bank and the government have repeatedly announced the support of SMEs, which are considered the backbone of the economy and need support for development on a large scale.