Key points

  • The government has dedicated Rs300 billion exclusively for small and medium enterprises exporting under the Export Finance Scheme, according to Business Recorder.
  • Adviser to the Finance Minister Khurram Schehzad announced that the financing allocation will be routed through the Pakistan Export-Import Bank.
  • The initiative aims to reduce the cost of doing business and is complemented by tax relief measures in the federal budget.

Small and medium-sized businesses looking to expand their footprint abroad have secured a dedicated financial lifeline, as the government sets aside a massive fund specifically for their export needs. According to Business Recorder, the move is designed to ease working capital constraints and lower the operational costs of exporting firms.

Key Details

Business Recorder reported that the entire Rs300 billion allocation, equivalent to approximately USD1.1 billion, is now exclusively earmarked for eligible SME exporters through the Pakistan Export-Import Bank (Pak EXIM). This funding had previously been shared with other categories of borrowers before being fully dedicated to the sector.

Khurram Schehzad, Adviser to the Finance Minister, announced the initiative, noting that participating banks have been directed by Pak EXIM to ensure effective implementation and utilisation of the funds. Business Recorder noted that this dedicated financing facility will be accompanied by federal budget tax relief measures for FY2026-27, including reductions in export-related taxes and Super Tax.

Context and Impact

The policy forms part of the government's wider agenda to expand finance access for SMEs and drive export-led economic growth, Business Recorder reported. By securing improved access to working capital, enterprises are expected to better fulfil international orders, scale up production capacities, and explore new markets.

Summary and What Next

The initiative places the Pakistan Export-Import Bank at the centre of efforts to support smaller exporters. Participating financial institutions are now tasked with ensuring the funds reach eligible businesses as intended.