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How Agentic AI could transform the SME sector

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10.06.2026

Pakistan's SMEs account for nearly 90% of businesses, yet many remain trapped by weak organisational capacity, fragmented workflows and limited managerial resources. The rise of Agentic AI may offer SMEs enterprise-level organisational intelligence they could never historically afford.

Currently, discussions around AI have focused on large language models, chatbots, content generation and automation. But the next wave of AI is shaping up to be far more transformative for businesses. The world is rapidly moving from generative AI to Agentic AI, systems capable of reasoning, planning, coordinating workflows and autonomously executing tasks with minimal human supervision. This shift could fundamentally redefine how SMEs operate.

For perspective, generative AI can draft an email or report. An Agentic AI system can manage customer interactions, monitor inventory, coordinate procurement, prepare compliance and optimise supply chains autonomously. For Pakistan, this may become particularly significant for SMEs.

SMEs form the backbone of Pakistan's economy. According to SMEDA, Pakistan has more than 5 million SMEs, accounting for nearly 90% of all enterprises, contributing around 40% to GDP and approximately 30% of exports. These firms dominate sectors such as textiles, logistics, retail and manufacturing. Yet despite their economic importance, most SMEs struggle with low productivity, fragmented operations, weak managerial systems and limited digitisation.

Historically, advanced organisational intelligence was largely limited to big corporations with the resources to invest in ERP systems, consultants,........

© The Express Tribune