Prime Minister Muhammad Shehbaz Sharif directed on Thursday that the requirement of 80 per cent exports be abolished for small and medium enterprises (SMEs) to access long-term financing. During a high-level meeting on facilitating export-oriented SMEs, the Prime Minister stated that no bank will be allowed to deviate from implementing the concessional financing scheme for SMEs and exporters.

A Prime Minister’s Office news release stated that the Prime Minister emphasized that government patronage and facilities should be ensured for the growth of SMEs. He said the government will provide all possible support to raise their capacity, improve skills and promote their businesses. To assist exporters, he directed that accreditation standards, laboratory expansion and other regulatory procedures be improved, and ordered the establishment of modern laboratories so that exporters can receive services at their doorstep.

The meeting included a detailed briefing on recent consultative sessions with SME representatives regarding issues such as taxes, refunds, provincial levies, accreditation, logistics, payments and financing. Officials reported that there are about 17,000 export-oriented SMEs in Pakistan. Since the State Bank of Pakistan launched a portal on Nov 1 for easier access to loans for the SME sector, it has received over 10,000 applications.

Regarding funding, the briefing added that Rs300 billion has been allocated in the Export Finance Scheme for the SME sector and new exporters, while Rs350 billion has been allocated this year for the long-term financing facility (LTGFF). The briefing also noted that steps are being taken to increase Pakistan’s exports to African countries.

The meeting was attended by Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar; Federal Ministers Rana Tanveer Hussain, Ahsan Iqbal, Jam Kamal Khan, Dr Musadik Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Ali Pervaiz Malik and Awais Ahmad Khan Leghari; the Prime Minister’s Adviser Haroon Akhtar; Minister of State Bilal Azhar Kayani; Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti; Chairman of the Standing Committee on Commerce Javed Hanif Khan; State Bank Governor Jameel Ahmad, and senior government officials.