Small and medium enterprises in Pakistan will find it easier to access long-term bank loans after the government removed the condition that firms must export 80 percent of their output to qualify, a decision announced on Thursday, November 5, 2026.
What happened?
Prime Minister Shehbaz Sharif directed the removal of the 80 percent export condition for small and medium enterprises (SMEs) seeking financing under the long-term financing facility, while chairing a high-level meeting on facilitating export-oriented SMEs in Islamabad on November 5. He also warned that no bank would be allowed to deviate from implementing the concessional financing schemes for SMEs and exporters.
Key details
- The 80 percent export requirement for SMEs to access long-term financing has been removed, opening cheaper long-term credit to smaller firms that sell at home as well as abroad.
- Rs300 billion has been allocated for the SME sector and new exporters under the Export Finance Scheme.
- Rs350 billion has been allocated this year for long-term financing to support machinery purchases and business expansion.
- The Prime Minister directed that no bank be allowed to deviate from implementing the concessional financing schemes for SMEs and exporters.
- The State Bank of Pakistan’s SMEConnect portal, launched on November 1, is now the single channel through which SME financing applications are received.
What it means for people in Pakistan
For small businesses that mainly serve the local market, the change removes a major barrier to affordable long-term credit for machinery and expansion. Exporters also benefit from the Rs300 billion Export Finance Scheme allocation. The real test will be whether banks follow through and disburse the loans quickly, so business owners should apply through the SMEConnect portal and keep their documents ready.
Source: https://thekarachipost.com/pm-removes-80-export-condition-for-smes-to-get-long-term-loans/
