Government reserves entire Rs 300 billion export finance scheme for SME exporters

The government has reserved the entire Rs300 billion allocation under the Export Finance Scheme administered by Pak EXIM Bank exclusively

Islamabad: The government has reserved the entire Rs300 billion allocation under the Export Finance Scheme administered by Pak EXIM Bank exclusively for eligible small and medium sized enterprise (SME) exporters, giving smaller businesses priority in accessing funds to support their export activities.

The decision, taken under Prime Minister Shehbaz Sharif’s policy direction and the leadership of Finance Minister Senator Muhammad Aurangzeb, means that the full allocation, equal to around $1.1 billion, will now be available only to eligible SME exporters.

Previously, the financing allocation was shared among small and medium sized businesses, agricultural SMEs and borrowers using the scheme for the first time. Under the revised policy, the entire amount has been reserved for eligible SME exporters.

The move is aimed at helping smaller export businesses obtain funds for their daily operations, improve their ability to compete in international markets and increase exports. Such financing can help businesses manage expenses involved in producing goods, buying raw materials and meeting export orders.

Pak EXIM Bank has directed banks participating in the scheme to follow the revised policy and ensure that the allocated funds are used effectively.

The decision is part of a wider government effort to improve access to finance for businesses and support economic growth through exports. Small and medium sized businesses are expected to benefit from more focused access to export financing, although the announcement does not provide details about the number of businesses expected to receive loans or the amount each business may obtain.

The dedicated financing facility also follows relief measures announced for exporters in the federal budget for the financial year 2026 to 2027.

These measures include the removal of the export surcharge, a reduction in tax on export income and super tax, and the continuation of export financing at significantly lower, concessional rates.

The government aims to reduce the financial and tax burden on exporters through these steps. Lower costs and easier access to funds are expected to improve cash flow, encourage businesses to invest and help more Pakistani companies compete in international markets.

The Finance Ministry’s policy focuses on improving access to finance and promoting export led economic growth. By directing the full Rs300 billion allocation towards eligible SME exporters, the government aims to give smaller businesses greater opportunities to expand their operations and reach more international buyers.

The policy is also intended to broaden Pakistan’s export base, encourage investment and support job creation. However, its impact will depend on how effectively participating banks implement the revised rules and how easily eligible businesses can access the financing.