Prime Minister Shehbaz Sharif has directed authorities to remove the requirement for small and medium enterprises (SMEs) to generate at least 80% of their revenue from exports to qualify for long-term financing, in a move aimed at widening access to credit and supporting the growth of export-oriented businesses. The directive was issued during a high-level meeting on Thursday focused on facilitating SMEs and addressing challenges faced by exporters. The prime minister also instructed authorities to ensure that banks strictly follow the concessional financing schemes introduced for SMEs and exporters, stressing that financial institutions should not be allowed to deviate from the prescribed arrangements. The government, he said, would extend all possible support to improve the capacity, skills and business growth of the SME sector.
The proposed removal of the export revenue condition is intended to make long-term financing more accessible to businesses that may have export potential but do not meet the existing 80% threshold. SMEs play a role in manufacturing, services, supply chains and employment, while access to affordable credit remains important for investment in machinery, technology, production capacity and business expansion. By revising the eligibility requirement, the government aims to broaden the pool of businesses able to seek financing under the relevant schemes. The prime minister also emphasised the need for government support and appropriate facilities to help SMEs strengthen their operations and become more competitive in domestic and international markets. Banks were specifically directed to implement the concessional financing framework without introducing deviations that could restrict access for eligible applicants.
The meeting also examined non-financial barriers affecting exporters, including accreditation standards, testing facilities, regulatory procedures and logistics. Shehbaz Sharif called for improvements in accreditation arrangements and the expansion of laboratories, directing authorities to establish modern testing facilities that exporters could access more easily. He stressed that essential testing and certification services should be available close to businesses so that exporters would not face unnecessary delays or additional logistical costs when meeting market requirements. Participants were also briefed on consultations with SME representatives, who had raised concerns involving taxation, tax refunds, provincial levies, accreditation, logistics, payment arrangements and financing. Addressing these issues was presented as an important part of improving the business environment and enabling companies to meet export standards.
According to the briefing presented at the meeting, Pakistan has approximately 17,000 SMEs engaged in export activities. The State Bank of Pakistan has received more than 10,000 applications after launching an online portal on November 1 to facilitate access to loans for the SME sector. The meeting was also informed that Rs300 billion had been allocated under the Export Finance Scheme for SMEs and new exporters, while Rs350 billion had been earmarked for the Long-Term Financing Facility during the current year. These allocations are intended to support financing needs across export-related business activities and longer-term investment. The volume of applications received through the SBP portal indicates considerable demand for access to the financing framework, although the eventual impact will depend on application processing, eligibility assessments and the availability of funds to businesses.
The government also reviewed measures aimed at increasing Pakistan’s exports to African countries as part of broader efforts to expand access to international markets. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, SBP Governor Jameel Ahmad and several federal ministers, advisers, parliamentary representatives and senior government officials. The discussions brought together officials responsible for finance, commerce, industry, energy and other areas connected with export development. The removal of the 80% export revenue condition, together with the financing allocations and proposed improvements in testing and accreditation facilities, forms part of the government’s effort to address constraints faced by SMEs. Implementation of the directives and consistent application of the financing schemes by banks will be important in determining how effectively these measures improve credit access and strengthen the export capacity of smaller businesses.
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