Prime Minister Shehbaz Sharif has directed the removal of the condition that small and medium-sized enterprises (SMEs) must earn at least 80 per cent of their revenue from exports to qualify for long-term financing, opening up cheaper credit to many more small businesses.
What happened?
The prime minister issued the directive while chairing a high-level meeting on Thursday, November 5, 2026, on facilitating export-oriented SMEs. He also directed that no bank be allowed to deviate from the government’s concessional financing schemes for SMEs and exporters.
Key details
- Until now, an SME had to generate at least 80 per cent of its revenue through exports to access long-term financing. That condition has been removed.
- The meeting was told there are around 17,000 export-oriented SMEs in Pakistan.
- The State Bank of Pakistan launched a dedicated SMEConnect portal on November 1, and more than 10,000 loan applications have been received since then.
- Rs300 billion has been allocated under the Export Finance Scheme for SMEs and new exporters, while Rs350 billion has been earmarked for the Long-Term Financing Facility this year.
- Removing the 80 per cent condition does not remove other requirements: applicants must still meet documentation, credit assessment and other eligibility criteria.
- The move follows the State Bank governor’s statement on October 30 that expanding SME financing is a top economic priority; the limit for SME loans without collateral has been raised from Rs10 million to Rs50 million.
What it means for people in Pakistan
Small businesses that mainly serve the domestic market — shops, workshops, service firms and small manufacturers — can now apply for long-term financing that was previously out of reach. Easier access to credit can help them buy machinery, expand and hire, and applications go through the State Bank’s SMEConnect portal.
Source: https://bloompakistan.com/long-term-financing-pm-orders-removal-of-80pc-export-requirement-for-smes/
