Prime Minister Shehbaz Sharif has ordered the removal of the mandatory 80% export requirement for small and medium-sized enterprises (SMEs), aiming to make concessional financing more accessible to businesses and encourage export growth.
The decision is expected to ease eligibility conditions for businesses seeking long-term financing and provide greater opportunities for smaller enterprises to expand their operations.
Chairing a high-level meeting on Thursday, November 5, the prime minister directed banks to fully implement concessional financing schemes for SMEs and exporters. He made it clear that banks should not refuse eligible businesses financing under the government-supported programmes.
He also instructed relevant authorities to improve accreditation standards, expand laboratory facilities and simplify procedures affecting exporters. Modern laboratories will be established to provide testing and certification services closer to businesses.
The meeting was informed that Pakistan has around 17,000 export-orientated SMEs. More than 10,000 applications have been received since the launch of a dedicated online portal on November 1 to facilitate access to financing.
Officials also briefed the meeting on the financial resources allocated to support the sector. Around Rs300 billion has been earmarked under the Export Finance Scheme for SMEs and new exporters.
An additional Rs350 billion has been allocated under the Long-Term Financing Facility for the current financial year. These funds are intended to support business investment and strengthen export capacity.
The prime minister said the government would provide all possible assistance to improve the skills, production capacity and business operations of small enterprises.
Participants also discussed challenges raised by SME representatives, including taxation, refunds, provincial levies, logistics, accreditation, payment procedures and access to bank financing.
The meeting reviewed measures to expand Pakistani exports to African markets as part of broader efforts to diversify export destinations and strengthen the country’s international trade presence.
The latest decision forms part of the government’s efforts to improve access to finance and address barriers affecting smaller businesses. However, the effectiveness of the measures will depend on their implementation by banks and relevant institutions.
