Governor State Bank Jamil Ahmed has announced an increase in financial facilities for small and medium enterprises (SMEs) and said that the maximum limit of collateral-free loans has been increased from Rs 5 million to Rs 50 million.
Addressing the business community at the Lahore Chamber of Commerce and Industry, he said that providing loans to SMEs on easy terms is one of the government’s top priorities. Special attention is also being given to the sectors of agriculture, housing and exports.
According to Jamil Ahmed, the definition of SMEs and the business volume limit have also been changed. Under the new criteria, the annual sales limit for small businesses has been increased from Rs 150 million to Rs 400 million.
Similarly, the annual business volume limit for medium-sized enterprises has been increased from Rs 800 million to Rs 2 billion. As a result of this change, enterprises with an annual business volume of up to Rs 2 billion will also be able to benefit from the facilities of SME financing.
The Governor of the State Bank said that the central bank has simplified the loan application form in collaboration with the Small and Medium Enterprises Development Authority (SMEDA) and commercial banks. Now entrepreneurs will only have to complete a one-page form for a loan.
He said that the government is also taking steps to reduce the cost of doing business, resolve tax-related issues and address the difficulties faced in the energy sector.
According to the Governor of the State Bank, the volume of SME financing was Rs 491 billion in June 2024, which increased to Rs 691 billion in June 2025 and reached about Rs 1,110 billion in June 2026.
During the same period, the number of businesses taking SME loans also increased from 177,000 to about 325,000.
Mentioning the facilities in the export sector, Jamil Ahmed said that the limit of the Export Refinance Scheme has been increased from Rs 1,000 billion to Rs 1,500 billion, of which Rs 300 billion is specifically allocated for SME exporters.
He further said that the SME Connect portal will be functional from November 1, 2026. Through it, business people will be able to apply for loans online from home and will also be able to see the progress of the application.
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