The Securities and Exchange Commission of Pakistan (SECP) has proposed raising several lending thresholds and eligibility criteria under the Non-Banking Finance Companies (NBFC) Regulations as part of proposed changes aimed at expanding access to financial services. The draft amendments include higher limits for housing and microenterprise loans, an increase in the general microfinance loan ceiling, a revised annual income threshold for microfinance beneficiaries and substantially higher turnover limits for small and medium-sized enterprises.
Under the proposed amendments, the maximum limit for housing loans and microenterprise loans would increase to Rs5 million. The SECP has also proposed setting the general microfinance loan limit at Rs500,000. The changes have been included in draft amendments released for public consultation, giving stakeholders an opportunity to submit their views before the regulatory framework is finalised.
The proposed revisions also address the annual income threshold applicable to individuals seeking microfinance loans. The SECP has suggested increasing the current annual income ceiling from Rs1.2 million to Rs1.5 million. The higher threshold would allow individuals with annual incomes within the revised limit to remain eligible for financing under the relevant microfinance framework, while reflecting changes in income levels and the wider economic environment.
Alongside the lending and income revisions, the SECP has proposed changes to the definitions and turnover thresholds used for Small and Medium Enterprises (SMEs). The proposed amendments seek to align the regulatory framework with recent adjustments made by the State Bank of Pakistan. For small enterprises, the maximum annual turnover threshold would rise from Rs150 million to Rs400 million. This would substantially expand the range of businesses falling within the proposed small enterprise category for the relevant regulatory purposes.
For medium enterprises, the proposed annual turnover ceiling would increase from Rs800 million to Rs2 billion. The adjustment would bring a considerably larger group of businesses within the revised medium enterprise turnover threshold. The proposed changes to SME definitions are part of the broader amendments covering financing limits and eligibility criteria under the NBFC Regulations.
The SECP said the draft amendments have been opened for consultation with affected stakeholders and other interested parties. Comments and suggestions are being invited within fourteen days from the placement of the draft amendments on the commission’s official website. The feedback process will allow financial institutions, businesses and other stakeholders to submit observations before the proposed regulatory changes are considered for finalisation.
The proposed increase in housing and microenterprise financing limits comes alongside the SECP’s stated objective of broadening financial inclusion. Raising the maximum loan amount could provide regulated non-banking finance companies with greater scope to offer financing to eligible borrowers under the revised framework. The proposed increase in the microfinance income ceiling would similarly modify the eligibility range for potential beneficiaries.
The changes also extend to the SME segment, where the proposed turnover thresholds would materially increase the size of businesses covered by the revised definitions. By updating lending limits, income ceilings and business turnover criteria together, the SECP is seeking to adjust the NBFC regulatory framework to current policy conditions and coordinate relevant definitions with the State Bank of Pakistan’s recent regulatory approach.
The proposals remain subject to the consultation process and are not yet final regulatory requirements. Stakeholders have fourteen days to submit their comments and recommendations to the SECP. Following the consultation, the commission will consider the received feedback before deciding on the final form of the amendments to the NBFC Regulations.
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