Govt allocates Rs300b for SME exporters

KARACHI:

In a bid to support small and medium-sized enterprises (SMEs) and promote export-led economic growth, the federal government has decided to provide Rs300 billion in financing facilities under the Export Finance Scheme, administered by Pakistan EXIM Bank, for the financial year 2026-27.

Welcoming the initiative, Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Syed Zia Alamdar Hussain said the decision would support the government's efforts to develop the SME sector and boost export growth.

He appreciated the vision and leadership of Prime Minister Shehbaz Sharif, as well as the efforts of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the Ministry of Finance and Pakistan EXIM Bank in taking this meaningful step to facilitate SME exporters.

Access to affordable working capital has remained a major challenge for small and medium-sized exporters, particularly SMEs seeking to expand their production capacity, secure new export orders and compete in international markets.

With Rs300 billion now allocated exclusively for eligible SMEs, these businesses will have a significant opportunity to secure the financing they need and strengthen their competitiveness.

SMEs are an important component of Pakistan's industrial and export ecosystem, contributing to employment generation, industrial diversification, entrepreneurship and sustainable economic growth.

The initiative is expected to encourage small businesses to enter export markets, expand their operations and contribute more effectively to the country's foreign exchange earnings.

The PHMA chairman also stressed that banks providing financing under the scheme should ensure transparent, timely and hassle-free processing of applications so that the allocated funds reach genuine SME exporters without unnecessary procedural delays.

Banks should clearly communicate eligibility requirements and facilitate deserving businesses in accessing the scheme, he added.

Hussain expressed hope that the government would introduce practical and business-friendly policies to reduce the cost of doing business, improve access to finance, ensure competitive energy tariffs and create a more stable overall export environment.