Govt expands export financing support to Rs1.85tr

MG News September 08, 2026 (MLN): The Government of Pakistan has expanded export financing support to improve access to affordable funding, strengthen exporters' competitiveness, and accelerate export-led economic growth. The Export-Import Bank of Pakistan (Pak EXIM), the country's Export Credit Agency and a policy institution, is managing key export financing schemes aimed at meeting the short- and long-term funding requirements of exporters. Under the Enhanced Export Finance Scheme (EFS), the financing envelope has been increased to Rs1,500 billion for FY2026-27, up from Rs1,000bn previously. On the Prime Minister's directives, Rs300bn has been earmarked specifically for SME exporters, agri-SMEs, and new borrowers. The allocation is aimed at widening access to export finance for businesses that have traditionally had limited participation in the scheme. The enhanced EFS allocation is expected to improve financing access across the export sector, particularly for SMEs, new entrants, and emerging exporters. The revised EFS limits have been allocated to participating financial institutions (PFIs) and are currently available to eligible exporters. Meanwhile, the Government has introduced the Long Term Export Growth Financing Facility (LTEGFF), with Rs350bn allocated in financing lines to support long-term investment and expansion of export capacity. The LTEGFF will facilitate investment in new plant and machinery, including locally manufactured and imported equipment, as well as balancing, modernization, and replacement (BMR) of existing projects. The facility will also support investments aimed at Pakistan's transition toward a greener and more sustainable economy, enabling exporters to improve environmental and sustainability standards and strengthen their competitiveness in international markets where ESG and environmental compliance are becoming increasingly important. Pak EXIM is managing the EFS and LTEGFF in coordination with the State Bank of Pakistan (SBP) to expand access to working-capital and long-term investment financing for exporters. The initiatives are intended to strengthen business capacity, encourage new exporters and greater SME participation, facilitate modernization and investment, and support diversification, competitiveness, and sustainable expansion of Pakistan's exports. To improve accessibility and streamline export finance processing, Pak EXIM has also developed its EFS Digital Portal, which digitally connects the bank with PFIs across the country, while development finance institutions (DFIs) are also being onboarded. The portal enables end-to-end digital interaction and processing between Pak EXIM and PFIs, with the aim of improving efficiency, transparency, and continuity in export financing services. Pak EXIM will continue coordinating with the Government, SBP, PFIs, DFIs, and exporters to strengthen Pakistan's export sector and support sustainable, competitive, and export-led growth. Copyright Mettis Link News