Govt reserves entire Rs300bn export finance scheme for SMEs
The government has reserved the full Rs300 billion under the Export Finance Scheme for eligible small and medium-sized exporters. Pak EXIM Bank has told participating banks to follow the revised policy.
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- The whole Rs300 billion, about $1.1 billion, is reserved for eligible SME exporters.
- Only businesses meeting the defined SME criteria can borrow under the scheme.
- Pak EXIM Bank has directed participating banks to apply the new policy strictly.
The federal government has set aside the entire Rs300 billion under the Export Finance Scheme for small and medium-sized enterprises, Minute Mirror reported. The amount is equal to around $1.1 billion, and the scheme is administered by Pak EXIM Bank.
According to Minute Mirror, the decision was taken under Prime Minister Shehbaz Sharif's policy direction and the leadership of Finance Minister Senator Muhammad Aurangzeb. Only eligible SME exporters will be able to use the funds.
Express News reported that, according to the Ministry of Finance, only businesses that meet the defined SME criteria can borrow under the scheme. Eligible businesses linked to the agriculture sector can also benefit, and the allocation includes agricultural SMEs.
Minute Mirror said the financing was previously shared among small and medium businesses, agricultural SMEs and borrowers using the scheme for the first time. The Ministry of Finance now says new borrowers no longer have a separate category and must meet the SME conditions like everyone else.
According to the reports, Pak EXIM Bank has directed participating commercial banks to implement the revised policy strictly and to make sure the allocated funds are used effectively.
The government's stated aim is to increase the exports of small businesses and to provide them with easy loans.
Minute Mirror noted that the announcement does not say how many businesses are expected to receive loans or how much each of them may obtain.
The outlet also pointed out that the federal budget for 2026-27 removed the export surcharge, reduced tax on export income and super tax, and continued export financing at concessional rates.
Background
khabr.pk reported on 6 November that Prime Minister Shehbaz Sharif directed that the requirement of 80 percent exports be abolished for small and medium enterprises seeking long-term financing. He gave the direction at a high-level meeting on facilities for export-oriented SMEs.
Why it matters
Small and medium exporters in Pakistan are the businesses directly affected, as the whole Rs300 billion is now reserved for them. Those that meet the defined SME criteria may find it easier to get export finance through participating banks. Workers at such firms could benefit if the loans help them expand sales, since the government says the aim is to raise small businesses' exports. Agricultural SMEs that qualify remain eligible.
