SME Loans in Pakistan: PM Orders End of the 80% Export Rule for Long-Term Financing
PM Shehbaz Sharif directed on 5 November 2026 that SMEs need not export 80% of output to get long-term financing. Rs 650 billion set aside. What to do now.
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Prime Minister Shehbaz Sharif has directed that small and medium enterprises (SMEs) no longer need to export at least 80 percent of their output to qualify for long-term financing. He gave the order at a meeting on SMEs on 5 November 2026. The same meeting was told that more than 10,000 loan applications reached the State Bank of Pakistan's SME portal after it opened on 1 November.
This is a directive, not yet a rule. The State Bank of Pakistan (SBP) sets the terms of its financing schemes through circulars, and we found no circular on the change by 6 November. We read the government's account of the Prime Minister's meeting and the Press Information Department's release on the Finance Minister's SME review the same day. Below is what was said, the money involved, and what an SME owner can do now.
The Prime Minister ordered the 80 percent export condition removed
According to the government's account of the 5 November meeting, the Prime Minister directed "the removal of the condition requiring SMEs to export at least 80 percent of their products to qualify for long-term financing". He also said no bank will be allowed to deviate from the concessional financing scheme for SMEs and exporters.
Long-term financing here means loans for machinery and expansion that run for years, at a lower rate than a normal bank loan. A rule tied to 80 percent exports shuts out most small firms, because most of them sell at home as well. Removing it would let a firm that exports part of its output apply.
The government's account does not say what share of exports, if any, will now be needed. That detail will come from the SBP when it changes the scheme.
Rs 650 billion is set aside for exporters' concessional loans this year
The meeting was told that Rs 300 billion has been allocated under the Export Finance Scheme for SMEs and new exporters. Another Rs 350 billion is earmarked this year for the Long-Term Financing Facility. Together that is Rs 650 billion of concessional credit for export-linked businesses.
| Item | Figure given on 5 November 2026 |
|---|---|
| Export Finance Scheme, for SMEs and new exporters | Rs 300 billion allocated |
| Long-Term Financing Facility, this year | Rs 350 billion earmarked |
| Applications on the SBP SME portal since 1 November | More than 10,000 |
| Export share needed for long-term financing | 80 percent condition to be removed |
The Export Finance Scheme gives short-term working capital to exporters. The Long-Term Financing Facility (LTFF) pays for plant and machinery. Both are run by the SBP through banks. We could not open the SBP's own scheme pages on 6 November, so we do not quote their current rates or limits here.
Over 10,000 SMEs applied on SMEConnect in its first days
The meeting heard that more than 10,000 applications came in after the SBP's SME loan portal opened on 1 November. The Finance Minister's separate review on 5 November said thousands of applicants had shown "keen interest" and that the platform needs further strengthening and simpler processes.
SMEConnect is now the single route for SME loan applications to banks. Our guide to applying on SBP SMEConnect walks through the form, status tracking and rejection reasons.
The Finance Minister wants more first-time SME borrowers
Finance Minister Muhammad Aurangzeb chaired a separate review of SME financing on 5 November. The Press Information Department's release says lending volumes have grown, but bringing more new SMEs into formal credit "remained a key priority". He asked for a sharper approach to micro, small and medium firms.
The release lists four points from that review:
- Commercial banks, microfinance banks and non-bank finance companies should widen their outreach.
- Dedicated financing limits, especially for exports, should be used better.
- SMEDA, the SME development authority, should work with lenders to turn training into actual loans.
- Follow-up meetings will review SMEConnect and regulatory hurdles raised with line ministries.
The Prime Minister's meeting also heard SME complaints on taxes, refunds, provincial levies, accreditation, logistics, payments and financing. He asked for better accreditation standards, more testing laboratories and simpler rules for exporters.
What an SME owner can do this week
Do not assume the new rule applies to your file yet. Until the SBP issues a circular, banks will follow the scheme as it stands. But you can prepare so that you are first in line when it changes.
- Apply for any SME loan through SMEConnect. Banks no longer take SME applications any other way.
- Gather your export records: export proceeds, form E or electronic export forms, and sales for the last year.
- Ask your bank's SME desk in writing whether you qualify for LTFF or the Export Finance Scheme today.
- If refused only because of the 80 percent export share, keep the refusal and reapply once the SBP circular is out.
- If a bank will not process a concessional loan you qualify for, complain to the bank first, then to the SBP.
Our list of SME loan schemes from Pakistani banks compares the main products. If you already have an overdue SME loan, see our guide to rescheduling an overdue SME loan.
Common questions
Has the 80 percent export condition for SME long-term financing been removed?
The Prime Minister directed its removal on 5 November 2026. It takes effect when the SBP changes the scheme by circular. We found no circular by 6 November.
What is the Long-Term Financing Facility?
It is an SBP scheme, run through banks, that gives exporters lower-rate loans for plant and machinery. Rs 350 billion is earmarked for it this year.
How much money is in the Export Finance Scheme for SMEs?
Rs 300 billion has been allocated for SMEs and new exporters, the 5 November meeting was told.
How many SMEs applied on SMEConnect?
More than 10,000 applications arrived after the portal opened on 1 November, according to the government.
Can a bank refuse a concessional SME loan?
A bank still checks your file. The Prime Minister said no bank will be allowed to deviate from the concessional scheme, so a refusal should come with a reason, which SMEConnect shows.
What we checked and sources
On 6 November 2026 we read the federal government's account of the Prime Minister's SME meeting of 5 November, published by the state broadcaster, and the Press Information Department's release on the Finance Minister's SME financing review of 5 November. The SBP's website refused our requests that day, so we could not read the current LTFF and Export Finance Scheme rules or confirm whether a circular had been issued. No rate or limit for either scheme is stated here for that reason.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
