PM directs removal of 80pc export condition for SME long-term financing

ISLAMABAD, Nov 05 (APP):Prime Minister Muhammad Shehbaz Sharif on Thursday directed that the requirement of 80 per cent exports be abolished for SMEs to access long-term financing. He also said no bank will be allowed to deviate from implementing the concessional financing scheme for small and medium enterprises (SMEs) and exporters. He gave the directions while chairing a high-level meeting on facilitating export-oriented SMEs, a Prime Minister's Office news release said. The prime minister said government patronage and facilities should be ensured for the growth of SMEs. He said the government will provide all possible support to raise their capacity, improve skills and promote their businesses. He directed that accreditation standards, laboratory expansion and other regulatory procedures be improved for exporters' convenience. He also directed the establishment of modern laboratories so that exporters can receive services at their doorstep. The meeting was briefed in detail on recent consultative sessions with SME representatives and the issues they raised. The briefing said the sessions discussed taxes, refunds, provincial levies, accreditation, logistics, payments and financing. The officials briefed that there are about 17,000 export-oriented SMEs in Pakistan. Since the State Bank of Pakistan launched a portal on Nov 1 for easier access to loans for the SME sector, it has received over 10,000 applications. Rs300 billion has been allocated in the Export Finance Scheme for the SME sector and new exporters, whereas Rs350 billion has been allocated this year for the long-term financing facility (LTGFF) and steps are being taken to increase Pakistan's exports to African countries, it added. The meeting was attended by Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar; Federal Ministers Rana Tanveer Hussain, Ahsan Iqbal, Jam Kamal Khan, Dr Musadik Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Ali Pervaiz Malik and Awais Ahmad Khan Leghari; the Prime Minister's Adviser Haroon Akhtar; Minister of State Bilal Azhar Kayani; Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti; Chairman of the Standing Committee on Commerce Javed Hanif Khan; State Bank Governor Jameel Ahmad, and senior government officials.