Govt seeks ways to ease export finance for SMEs

The government says it is working to address financing, regulatory and market-access challenges faced by small and medium-sized enterprises (SMEs), in order to raise their export potential, according to the Associated Press of Pakistan (APP). Minister of State for Finance Bilal Azhar Kayani chaired a high-level consultative meeting at the Finance Division in Islamabad on October 29 on practical steps to enhance SME exports and improve their access to export finance.

The meeting discussed the main challenges faced by exporting SMEs and sought feedback from exporters on the government's recently announced SME support measures. The government committed to supporting exporting SMEs by improving access to finance and foreign markets, introducing new products, reducing the cost of doing business and promoting ease of doing business.

Kayani asked the participating banks to designate focal persons, clearly communicate eligibility criteria and set timelines for processing SME applications under the Export Finance Scheme. He also stressed making the Export Facilitation Scheme more effective and examining whether export credit insurance and risk-sharing mechanisms could be expanded for smaller exporters.

Exporting SMEs from a range of sectors raised regulatory and taxation matters, compliance costs, certification requirements and emerging green certification requirements. Export costs and competitiveness were also discussed, including freight availability, shipping costs and access to machinery and technology that improve productivity.

Kayani directed stakeholders to consult chambers and exporters, document the key issues and establish a tracking mechanism with clear responsibilities and timelines. Relevant institutions will review financing, regulatory and market-access matters and assess options to improve digital access, collateral arrangements and export credit support.

The meeting reaffirmed the government's commitment, in line with the prime minister's directives, to improving export finance access and coordination for SMEs.

Those attending included Commerce Secretary Jawad Paul, Dr Saeed, Senior Technical Advisor to the Prime Minister's Office on Trade, Special Secretary Commerce Syed Hamid Ali, and FBR Member (Strategic Transformation) Dr Hamid Ateeq Sarwar. Senior Commerce Ministry officials, provincial department officials and representatives of leading SME exporters also took part, Geo News reported.