ISLAMABAD: Pakistan's government has allocated Rs300 billion (about $1.1 billion) exclusively for small and medium enterprises exporting under the Export Finance Scheme, in a move aimed at improving SMEs' access to concessional financing and strengthening the country's export competitiveness.
Khurram Schehzad, adviser to the finance minister, announced the initiative, saying the full allocation would now be dedicated to eligible SME exporters through the Pakistan Export-Import Bank, or Pak EXIM.
He said the funds had previously been shared with other categories of borrowers but are now ring-fenced for SMEs to facilitate their access to export financing.
The initiative is part of the government's broader agenda to expand access to finance for SMEs and promote export-led economic growth.
According to the announcement, the dedicated facility will be complemented by tax relief measures in the federal budget for fiscal year 2026-27, including reductions in export-related taxes and the super tax, to ease the financial burden on exporters.
Schehzad said Pak EXIM has directed participating banks to ensure the effective implementation and use of the allocation.
The move is expected to give SMEs improved access to working capital, helping them fulfill export orders, expand production capacity and explore new international markets. SMEs make up a significant segment of Pakistan's business sector but continue to face constraints in accessing affordable credit, particularly for working capital and export expansion.
The government believes that reserving the financing allocation for SME exporters, alongside tax concessions, will improve their competitiveness and encourage greater participation in international trade. The initiative is being pursued under the prime minister's vision and the finance minister's leadership as part of the Ministry of Finance's agenda to improve access to finance and promote export-led growth.
