Rs300bn SME export financing: Will small businesses finally get their share?
ISLAMABAD: The government has earmarked Rs300 billion exclusively for small and medium enterprises (SMEs) exporting under the Export Finance Scheme (EFS), in a move aimed at improving access to affordable credit and strengthening Pakistan’s export base.
Khurram Schehzad, Adviser to the Finance Minister, announced that the entire financing allocation, equivalent to approximately $1.1 billion, would now be dedicated to eligible SME exporters through the Pakistan Export-Import Bank (Pak EXIM).
The allocation was previously shared with other categories of borrowers but has now been ring-fenced for SMEs to improve their access to export financing.
The move signals a policy shift towards expanding the participation of smaller businesses in international trade, as limited access to affordable working capital remains a major constraint for SMEs seeking to fulfil export orders and expand production.
However, the effectiveness of the initiative will largely depend on how participating banks translate the dedicated allocation into actual lending for smaller exporters.
Access to financing, eligibility requirements, collateral conditions and banking procedures will remain critical factors in determining whether the facility reaches businesses that have traditionally struggled to secure affordable credit.
Schehzad said Pak EXIM had directed participating banks to ensure effective implementation and utilisation of the dedicated allocation.
The financing initiative will also be complemented by tax relief measures introduced in the federal budget for FY2026-27, including reductions in export-related taxes and Super Tax, aimed at easing the financial burden on exporters.
The government expects the facility to help SMEs secure working capital, fulfil international orders, increase production capacity and explore new export markets.
SMEs constitute a significant segment of Pakistan’s business sector but continue to face financing constraints, particularly when seeking funds for working capital and export expansion.
The dedicated allocation is part of the government’s broader strategy to promote export-led economic growth under the Prime Minister’s vision and the Finance Minister’s leadership.
While the Rs300 billion commitment represents a substantial financing allocation, its real impact will ultimately be measured by actual disbursements, the number of SME exporters benefiting from the facility and the additional export business generated.
For Pakistan’s smaller exporters, the key question is no longer just how much financing has been allocated, but how accessible that financing will be.