“No leniency should be shown by the State Bank of Pakistan and the Ministry of Finance toward banks showing a slow pace in providing loans to farmers, SMEs, and consumers,” Prime Minister Shehbaz Sharif said, as the government ring-fenced Rs300 billion — roughly $1.1 billion — exclusively for small and medium enterprises exporting under the Export Finance Scheme, Business Recorder reported.
Khurram Schehzad, Adviser to the Finance Minister, announced that the entire Rs300 billion allocation would now be dedicated to eligible SME exporters through the Pakistan Export-Import Bank (Pak EXIM), whereas it had previously been shared with other categories of borrowers. The move is part of the government’s broader agenda to expand access to finance for SMEs and promote export-led growth, and it will be complemented by tax relief in the federal budget for FY2026-27, including reductions in export-related taxes and Super Tax.
Sharif Removes 80 Percent Export Condition for SME Long-Term Financing
At a separate meeting on facilitating export-oriented SMEs in Islamabad, Prime Minister Sharif directed the removal of the condition requiring SMEs to export at least 80 percent of their products to qualify for long-term financing, The Nation (Pakistan) reported. He also directed that no bank be allowed to deviate from the concessional financing scheme for SMEs and exporters, and called for improved accreditation standards, expanded laboratory facilities, and simplified regulatory procedures, including modern laboratories near exporters’ businesses.
وزیرِ اعظم محمد شہباز شریف کی زیر صدارت ترجیحی شعبوں کو قرضوں کی فراہمی میں سہولت پر جائزہ اجلاس آج اسلام آباد میں منعقد ہوا. اجلاس سے گفتگو کرتے ہوئے وزیرِ اعظم نے کہا کہ چھوٹے و درمیانے درجے کے کاروبار، ہاؤسنگ اور زراعت کی ترقی سے معیشت میں بہتری اور نوجوانوں کو روزگار فراہم… pic.twitter.com/fthZ2SSKws
The meeting was told that around 17,000 SMEs in Pakistan are associated with exports, and that over 10,000 applications had been received since the State Bank of Pakistan launched a portal on November 1 to facilitate SME access to loans. Alongside the Rs300 billion under the Export Finance Scheme for SMEs and new exporters, Rs350 billion has been earmarked this year for the Long-Term Financing Facility.
Finance Ministry Ties SME Growth to Export-Led Strategy
Finance Minister Muhammad Aurangzeb separately told the Lahore Chamber of Commerce and Industry that exports must remain central to Pakistan’s growth strategy, with policies focused on helping exporters compete in regional and international markets, The News Pakistan reported. He stressed the need for clear and predictable policies, simpler regulations, and regular engagement with the business community, and said improving access to finance for SMEs required practical and targeted measures.
Banks Face Pressure as Loan Volumes Reach Trillions of Rupees
Dawn reported that at a review meeting on priority-sector loans, Sharif said banks demonstrating good performance in providing loans to agriculture, housing, and SMEs are commendable, but that slow lenders would face no leniency. The meeting was briefed that under the Prime Minister’s Apna Ghar Scheme, loans worth Rs511 billion had been approved up to October 23, with 86,899 loans approved and Rs91 billion disbursed to 15,584 applicants. Overall, housing loans reached Rs455 billion for 187,317 borrowers, agricultural loans stood at Rs1,329 billion for nearly 3.5 million beneficiaries, and SME loans totaled Rs1,148 billion for 342,458 businesspersons.
What Comes Next for SME Exporters
Pak EXIM has directed participating banks to ensure effective implementation and utilisation of the dedicated Rs300 billion allocation, Schehzad said. The government expects the facility to give SMEs improved access to working capital, help them fulfil export orders, expand production capacity, and explore new markets, including African countries. The next dated milestone on record is the FY2026-27 federal budget, which carries the announced export-related tax and Super Tax reductions for exporters.
Questions Readers Ask About the Rs300 Billion SME Export Allocation
How much financing is now reserved solely for SME exporters? The full Rs300 billion — about $1.1 billion — under the Export Finance Scheme, routed through Pak EXIM, with Rs350 billion separately earmarked for the Long-Term Financing Facility.
SMEs no longer need to derive at least 80 percent of revenue from exports to qualify for long-term financing, following the prime minister’s directive.
More than 10,000 applications since the State Bank of Pakistan’s portal opened on November 1.