SBP governor speaks about increased financing for SMEs

SBP Governor Jameel Ahmad said SME lending is a priority and outlined expanded eligibility and financing measures at a Lahore Chamber of Commerce and Industry event, Business Recorder reported. The ceiling for unsecured SME loans has risen from Rs10 million to Rs50 million, while the turnover threshold for small businesses is now Rs400 million and for medium firms Rs2 billion.

Outstanding SME finance climbed from Rs491 billion in June 2024 to about Rs1,110 billion in June 2026, while borrowers increased to around 325,000. A simplified, one-page loan form has been introduced, and the SME Connect Portal is due to go live on November 1, 2026, allowing online applications and progress tracking.

The Export Refinance Scheme limit was raised to Rs1.5 trillion, including Rs300 billion reserved for SME exporters, and the Cabinet approved a 10-year export finance scheme. LCCI representatives also urged greater Islamic-bank participation, saying a 5.9 per cent SME financing target could add Rs204 billion in lending.