Pakistan has allocated Rs300 billion exclusively for small and medium enterprises exporting under the Export Finance Scheme, according to an announcement by Khurram Schehzad, Adviser to the Finance Minister. The dedicated financing allocation, equivalent to around USD1.1 billion, will be directed to eligible SME exporters through the Pakistan Export-Import Bank to improve access to concessional financing, reduce the cost of doing business, and strengthen export competitiveness.
Pakistan Export-Import Bank Takes Over Export Finance Scheme Allocation
The Rs300 billion financing allocation had previously been shared with other borrower categories. By ring-fencing the funds for SMEs through Pak EXIM, the government aims to ease access to export financing and provide businesses with necessary working capital.
Pak EXIM has directed participating banks to ensure the effective implementation and utilisation of the dedicated funds. Prime Minister Shehbaz Sharif stated that no bank will be allowed to deviate from the concessional financing scheme for SMEs and exporters, according to reporting by The Nation.
Tax Relief Measures and Long-Term Financing Adjustments
The financing facility is complemented by tax relief measures introduced in the federal budget for FY2026-27, which include reductions in export-related taxes and Super Tax. These measures aim to ease the financial burden on exporters alongside the new credit allocations.
In addition to the Export Finance Scheme, Prime Minister Shehbaz Sharif directed authorities to remove the requirement that small and medium enterprises generate at least 80 percent of their revenue from exports to qualify for long-term financing. Officials were informed during the meeting that the Long-Term Financing Facility has been allotted Rs350 billion for the current year.
Did You Know? More than 10,000 applications were logged by authorities after the State Bank of Pakistan unveiled its online portal on November 1 to help small and medium enterprises secure loans.
SME Credit Constraints and Economic Strategy
Small and medium enterprises constitute a significant segment of Pakistan’s business sector but continue to face constraints in accessing affordable credit for working capital and export expansion. Around 17,000 SMEs in Pakistan are associated with exports.
Minister for Finance and Revenue Muhammad Aurangzeb noted during a separate meeting with the Lahore Chamber of Commerce and Industry that exports must remain central to the country’s growth strategy, emphasizing the need for clear and predictable policies and simpler regulations.
Details of export finance allocations for SMEs
What is the total amount allocated under the Export Finance Scheme for SMEs?
The government has allocated Rs300 billion, equivalent to around USD1.1 billion, exclusively for SMEs exporting under the Export Finance Scheme.
Which institution is managing the dedicated SME financing allocation?
The financing allocation is being directed to eligible SME exporters through the Pakistan Export-Import Bank, which has instructed participating banks to ensure effective utilization.
What additional financing facility and threshold changes were announced?
Prime Minister Shehbaz Sharif ordered that businesses no longer need to hit an 80 percent export threshold to access long-term credit, while the Long-Term Financing Facility has been assigned Rs350 billion for this year.
How will commercial banks respond to the government’s directive to strictly enforce concessional financing allocations for small and medium enterprises?
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