Government redirects entire Pak EXIM Bank financing allocation to eligible small and medium-sized exporters to boost exports, investment and job creation

Brussels, (Unib Rashid) – The Government of Pakistan has announced a major policy initiative to strengthen the country’s small and medium-sized enterprises (SMEs), reserving the entire Rs300 billion (approximately US$1.1 billion) allocation under the Pakistan Export-Import Bank’s (Pak EXIM Bank) Export Finance Scheme (E-EFS) exclusively for eligible small and medium-sized exporters.

The decision, taken under the leadership of Prime Minister Shehbaz Sharif and Federal Minister for Finance Senator Muhammad Aurangzeb, aims to improve access to affordable financing, strengthen export-oriented businesses and enhance Pakistan’s competitiveness in international markets.

Under the revised policy, the full Rs300 billion financing facility will now be dedicated to eligible SME exporters. Previously, the allocation was shared among small and medium-sized enterprises, agricultural SMEs and first-time beneficiaries of the scheme.

The revised arrangement establishes a clearer policy priority for SME exporters, enabling smaller businesses to access the working capital required to meet day-to-day operational expenses, expand production, invest in their operations and compete more effectively in global markets.

Pak EXIM Bank Directs Participating Banks to Ensure Implementation

To ensure effective implementation of the decision, Pak EXIM Bank has issued instructions to participating banks to facilitate the allocation and utilisation of the funds in accordance with the revised policy.

The initiative is expected to improve access to export financing for eligible small businesses, helping them overcome financial constraints and explore new opportunities in international trade.

Additional Tax Relief and Export Incentives

The dedicated financing facility complements the incentives announced for exporters in the federal budget for the 2026–27 financial year.

These measures include the abolition of the export surcharge, reductions in income tax and super tax on export earnings, and the provision of concessional export financing at significantly lower rates.

The combined measures are aimed at reducing the financial and tax burden on businesses, improving cash flow, encouraging new investment and enabling more small and medium-sized enterprises to participate in international trade.

Focus on Export-Led Economic Growth

The Ministry of Finance’s broader strategy focuses on improving businesses’ access to financial resources and promoting sustainable, export-led economic growth.

By directing greater financial support towards SME exporters, the government aims to broaden Pakistan’s export base, strengthen smaller businesses and create additional opportunities for investment and employment.

The policy is also intended to encourage inclusive and sustainable economic development by providing smaller enterprises with improved opportunities to expand their operations and enter international markets.

The government expects stronger SME participation in export activities to contribute to higher exports, increased investment and job creation, supporting Pakistan’s transition from economic stabilisation towards sustainable growth.