PM orders removal of 80% export threshold for SME long-term financing

Prime Minister Shehbaz Sharif directed authorities on Thursday to remove the requirement that small and medium enterprises generate at least 80% of their revenue from exports to qualify for long-term financing.

At a meeting on facilitating export-oriented SMEs, Sharif also directed officials to ensure that banks comply with concessional financing schemes for SMEs and exporters. The meeting was told that about 17,000 SMEs in Pakistan are engaged in exports.

Officials said the State Bank of Pakistan had received more than 10,000 applications since launching a portal on November 1 to facilitate SME access to loans. Rs300 billion was allocated under the Export Finance Scheme for SMEs and new exporters, while Rs350 billion was earmarked for the Long-Term Financing Facility.

Participants discussed issues raised by SME representatives, including taxation, refunds, provincial levies, accreditation, logistics, payments and access to financing. Sharif also called for improved accreditation standards, expanded laboratory capacity and simpler regulatory procedures, and directed authorities to establish modern testing laboratories closer to exporters' businesses.

The meeting also reviewed measures to expand Pakistani exports to African markets.