Pakistan has reserved an allocation of Rs300 billion exclusively for small and medium enterprises (SMEs) under the Pak EXIM-administered Export Finance Scheme (E-EFS) for the fiscal year 2026-27. The decision aims to expand access to financing for eligible businesses and support the government’s efforts to promote export-led economic growth. Under the revised arrangement, the entire allocation will be utilised for financing SMEs, including both existing borrowers and businesses seeking to obtain financing for the first time. The move establishes a dedicated financing facility for the SME sector within the broader export finance framework.
The allocation forms part of the enhanced E-EFS financing envelope for FY2026-27, which was increased in pursuance of the government’s directives to facilitate export-oriented economic activities. Initially, Rs300 billion was earmarked for three segments: SMEs, agricultural small and medium enterprises (Agri-SMEs), and new-to-borrower businesses. However, under the latest notification, the government has specified that the complete Rs300 billion allocation will now be exclusively utilised for financing SMEs. This changes the scope of the designated quota by directing the entire amount towards businesses that fall within the applicable SME classification.
According to the notification, financing under this allocation will be available to both existing and new borrowers, provided they meet the SME definition prescribed under the State Bank of Pakistan’s Prudential Regulations for SMEs. This requirement establishes the eligibility criteria for businesses seeking financial support through the scheme. Companies and business owners will therefore need to fall within the regulator’s prescribed SME classification to qualify for financing under the dedicated allocation. By covering both existing borrowers and new applicants, the arrangement provides access to financing across different stages of business operations rather than restricting the facility to businesses that already have established borrowing relationships with banks.
Pak EXIM has already distributed the respective financing limits among participating banks under the designated Rs300 billion quota. This allocation of limits means that participating financial institutions have been assigned their respective shares to facilitate eligible SME financing under the scheme. Businesses interested in obtaining funding can approach these banks to understand the application requirements, eligibility conditions and financing arrangements available under the E-EFS framework. The notification specifically encourages eligible SMEs to contact participating banks and submit their financing applications through the designated channels.
The exclusive allocation is intended to strengthen financing opportunities for Pakistan’s SME sector, which plays an important role in business activity, employment generation and the country’s export supply chain. Access to formal financing remains an important requirement for smaller businesses seeking to expand operations, improve production capacity and participate in export-oriented activities. By directing the full Rs300 billion quota towards SMEs, the revised arrangement provides a dedicated financing pool for businesses meeting the regulatory definition. With participating banks already assigned their respective limits, eligible existing and new SME borrowers can approach these institutions to apply for financing during FY2026-27.
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