Prime Minister Shehbaz Sharif has ordered the removal of the condition requiring small and medium enterprises to export at least 80 per cent of their output to qualify for long-term financing, in a move aimed at widening small businesses' access to credit.

The directive was issued at a high-level meeting on facilitating export-oriented SMEs in Islamabad on Thursday 5 November. The prime minister said no bank would be allowed to deviate from the government's concessional financing schemes for SMEs and exporters, and promised full government support to build the capacity of small businesses, improve their skills and expand their opportunities.

Hundreds of billions set aside

The meeting was told that Rs300 billion has been allocated under the Export Finance Scheme for SMEs and new exporters, while Rs350 billion has been earmarked this year for the Long-Term Financing Facility. The State Bank of Pakistan launched a dedicated portal on 1 November to make it easier for small businesses to apply for loans, and it has already received more than 10,000 applications.

Officials briefed the meeting on recent consultations with SME representatives, which covered taxes, refunds, provincial levies, accreditation, logistics, payments and financing.

What changes for small exporters

Removing the 80 per cent threshold does not mean every SME will automatically qualify for a loan; applicants must still meet documentation, credit assessment and other eligibility requirements. But for firms that sell mainly at home while building export orders, the change removes a barrier that previously shut them out of cheap long-term credit altogether.

The government says the measure is part of a wider push to raise exports by helping smaller firms reach international standards, a theme that also ran through the prime minister's approval of a modernisation plan for the Trade Development Authority the following day.