PM orders easing of SME export financing requirements

Shehbaz Sharif directs banks to comply with concessional financing schemes as government earmarks Rs650bn for export financing facilities. Prime Minister Shehbaz Sharif on Thursday directed authorities to remove the requirement for small and medium enterprises (SMEs) to generate at least 80% of their revenue from exports to qualify for long-term financing, as the government seeks to improve credit access and boost exports. Chairing a high-level meeting on facilitating export-oriented SMEs, the prime minister also directed authorities to ensure that banks strictly comply with concessional financing schemes introduced for SMEs and exporters. He said the government would provide all possible support to strengthen the capacity, skills and business growth of SMEs, stressing the need for institutional support and necessary facilities to promote the sector. The prime minister also called for improving accreditation standards, expanding laboratory facilities and simplifying regulatory procedures to facilitate exporters. He directed the establishment of modern laboratories to ensure that exporters have access to essential testing and certification services closer to their businesses. During the meeting, officials briefed participants on recent consultations with SME representatives, who had raised concerns over taxation, refunds, provincial levies, accreditation, logistics, payments and access to financing. According to the briefing, approximately 17,000 SMEs are currently engaged in exports across Pakistan. The meeting was informed that the State Bank of Pakistan (SBP) had received more than 10,000 applications following the launch of a dedicated portal on November 1 to facilitate SME access to loans. Officials further informed the meeting that Rs300 billion had been allocated under the Export Finance Scheme for SMEs and new exporters, while another Rs350 billion had been earmarked for the Long-Term Financing Facility (LTFF) during the current year. The meeting also reviewed measures aimed at expanding Pakistani exports to African markets. Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Commerce Minister Jam Kamal Khan, Planning Minister Ahsan Iqbal, Industries Minister Rana Tanveer Hussain and other federal ministers attended the meeting. SBP Governor Jameel Ahmad, Adviser to the Prime Minister Haroon Akhtar, Minister of State Bilal Azhar Kiani, senior government officials and parliamentary representatives were also present.