Pakistan eases SME financing rules to support export sector

Traders Union
All News
Business & Wealth
Pakistan eases SME export rules

Highlights

Pakistan scraps the 80% export revenue requirement for SMEs to access long-term financing, broadening eligibility for concessional loans.
Rs300 billion is allocated under the Export Finance Scheme and Rs350 billion under the Long-Term Financing Facility for SMEs and exporters in 2024.
Over 10,000 applications have been received via the State Bank of Pakistan's portal since November 1, signaling strong SME demand for new credit access.

Financing changes for export-oriented SMEs

As reported by Business Recorder, Shehbaz on Thursday directed authorities to scrap the requirement that SMEs derive 80% of their revenue from exports to qualify for long-term financing. He also said no bank should be allowed to deviate from the concessional financing scheme introduced for SMEs and exporters.

The prime minister says the government will provide all possible support to improve SME capacity, skills and business growth, while ensuring patronage and facilities for the sector's development. He also calls for stronger accreditation standards, more laboratories and simpler regulatory procedures to help exporters, adding that testing and certification facilities should be available closer to businesses.

Officials at the meeting say recent consultations with SME representatives identified challenges including taxation, refunds, provincial levies, accreditation, logistics, payments and financing. According to the briefing, Pakistan has about 17,000 SMEs engaged in exports.

Credit allocation and broader export push

The meeting is told that the State Bank of Pakistan receives more than 10,000 applications after launching a portal on November 1 to improve SME access to loans. Officials also say Rs300 billion has been allocated under the Export Finance Scheme for SMEs and new exporters, while Rs350 billion has been earmarked for the Long-Term Financing Facility this year.

The discussion also covers measures aimed at raising Pakistani exports to African countries, linking SME financing with a broader trade expansion effort. Senior cabinet members, the SBP governor and other government officials attend the meeting, underscoring the policy focus on export growth and financing access.

Our earlier report on Pakistan’s push to expand priority-sector lending outlined Prime Minister Shehbaz Sharif’s directive for banks to increase financing for SMEs, agriculture and housing as a condition for accessing government incentives. It detailed credit growth targets through June 2027, alongside measures such as simpler loan processes, revised SME regulations, risk-sharing and supply-chain financing to widen formal credit access.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.