Finance Minister of State Bilal Azhar Kayani calls for clearer bank procedures, stronger export credit support and lower business costs to help small and medium-sized enterprises compete in international markets.
Pakistan’s government is exploring ways to improve export financing for small and medium-sized enterprises (SMEs), as businesses seek easier access to credit, international markets and affordable production facilities.
Minister of State for Finance Bilal Azhar Kayani chaired a high-level consultative meeting at the Finance Division in Islamabad on Thursday, October 29, to discuss barriers facing SME exporters and identify practical measures to strengthen their competitiveness. The meeting also reviewed recently announced government support measures and gathered feedback from exporters.
Banks urged to improve access to export financing
Kayani emphasised the need to make the Export Finance Scheme (EFS) more accessible to small and medium-sized businesses.
He urged participating banks to appoint designated focal persons, clearly communicate eligibility requirements and establish timelines for processing applications. These measures are intended to make the financing process clearer and improve exporters’ ability to plan their operations.
The meeting also examined ways to improve the effectiveness of the Export Facilitation Scheme and assess the feasibility of expanding export credit insurance and risk-sharing arrangements for smaller businesses.
Exporters highlight rising business costs
Representatives of exporting SMEs from various sectors raised concerns about regulatory requirements, taxation, compliance expenses and product certification.
Participants also discussed the growing importance of environmental or green certification for businesses seeking access to international markets. Meeting these requirements can add to the costs faced by smaller exporters, particularly those with limited financial and technical resources.
Freight availability and shipping costs were other major issues discussed. Exporters also highlighted the need for better access to modern machinery and productivity-enhancing technology to strengthen production capacity and improve competitiveness.
Government plans to track exporters’ concerns
Kayani directed relevant stakeholders to consult chambers of commerc
e and exporters, document the key challenges and establish a tracking mechanism with clearly defined responsibilities and timelines.
Government institutions are expected to review financing arrangements, regulatory hurdles and barriers to international market access. The review will also consider options for improving digital access, collateral arrangements and export credit support.
The meeting reaffirmed the government’s stated commitment to reducing the cost of doing business, improving coordination among institutions and helping Pakistani SMEs expand their presence in foreign markets. However, the announcement did not specify a final implementation schedule for the proposed improvements.
SME financing reforms: A related development
In a separate development on October 29, the State Bank of Pakistan announced the launch of SMEConnect, a centralised digital portal intended to connect small and medium-sized enterprises with banks and development finance institutions.
According to the central bank’s circular, SME financing applications are to be submitted through the portal from November 1, 2026, following the required verification process. The initiative is intended to simplify digital access to financing, although its practical impact will depend on implementation and how effectively businesses can use the platform.
SME financing reforms: A related development
In a separate development on October 29, the State Bank of Pakistan announced the launch of SMEConnect, a centralised digital portal intended to connect small and medium-sized enterprises with banks and development finance institutions.
According to the central bank’s circular, SME financing applications are to be submitted through the portal from November 1, 2026, following the required verification process. The initiative is intended to simplify digital access to financing, although its practical impact will depend on implementation and how effectively businesses can use the platform.
