PM Shehbaz orders removal of 80% export condition for SMEs seeking long-term financing

Prime Minister Shehbaz Sharif on Thursday directed authorities to remove the requirement for small and medium enterprises (SMEs) to generate 80% of their revenue from exports to qualify for long-term financing, aiming to improve access to credit and support export growth.

Chairing a high-level meeting on facilitating export-oriented SMEs, the prime minister also directed that no bank should be allowed to deviate from the concessional financing scheme introduced for SMEs and exporters.

He stressed that the government would provide all possible support to improve the capacity, skills and business growth of SMEs, adding that government patronage and necessary facilities must be ensured for the sector’s development.

Shehbaz also called for improvements in accreditation standards, expansion of laboratories and simplification of regulatory procedures to facilitate exporters.

Directing authorities to establish modern laboratories, he said exporters should have access to essential testing and certification facilities at their doorsteps.

During the meeting, participants were briefed on recent consultations with SME representatives, during which they highlighted challenges relating to taxation, refunds, provincial levies, accreditation, logistics, payments and financing.

Pakistan has approximately 17,000 SMEs engaged in exports, according to the briefing.

The meeting was informed that the State Bank of Pakistan (SBP) had received more than 10,000 applications following the launch of a portal on November 1 to facilitate access to loans for the SME sector.

It was further 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 (LTFF) this year.

The meeting also reviewed measures aimed at increasing Pakistani exports to African countries.

Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Rana Tanveer Hussain, Ahsan Iqbal, Jam Kamal Khan, Musadik Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Ali Pervaiz Malik and Owais Ahmed Khan Leghari attended the meeting.

Adviser to the Prime Minister Haroon Akhtar, Minister of State Bilal Azhar Kiani, Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti, Chairman of the National Assembly Standing Committee on Commerce Javed Hanif Khan, SBP Governor Jameel Ahmad and senior government officials were also present.