Export Finance Scheme: Rs 300 Billion Reserved for SME Exporters

The Export Finance Scheme now has Rs 300 billion reserved only for small and medium exporters. The announcement was made on 8 November 2026 by Khurram Schehzad, Adviser to the Finance Minister. He said the full Rs 300 billion allocation under the Export Finance Scheme will be given to eligible SME exporters through the Pakistan Export-Import Bank (Pak EXIM). The aim is to give small exporters easy and cheap working capital, so they can increase production and reach new markets. This page explains the announcement, the full scheme, and what an SME exporter should do now.

Parho Pakistan is an independent information website. It is not a part of the Finance Ministry, the State Bank or Pak EXIM Bank, and it cannot approve any loan. Always confirm the rules from Pak EXIM, the State Bank of Pakistan, or your own bank.

Key Takeaways

• Rs 300 billion under the Export Finance Scheme is now reserved exclusively for SME exporters. It will be provided through Pak EXIM Bank and participating financial institutions.
• The total Export Finance Scheme has been increased to Rs 1,500 billion for 2026-27, from Rs 1,000 billion before. Another Rs 350 billion is available under the Long-Term Financing Facility.
• On 5 November 2026, the Prime Minister also removed the 80 percent export condition for SMEs taking long term financing, and directed banks not to deviate from the concessional schemes.
• This is an allocation, not a cash handout. Every business must apply through a bank and meet the eligibility rules. No agent can guarantee a loan.

The Announcement at a Glance

What Was Announced on 8 November 2026

Khurram Schehzad said the government has allocated Rs 300 billion, equal to about USD 1.1 billion, exclusively for small and medium enterprises under the Export Finance Scheme. This money will be channelled through Pak EXIM Bank. He said the step will improve the access of SMEs to concessional financing, reduce their cost of doing business, and make Pakistani exports more competitive.

The announcement is supported by tax relief measures for SMEs in the Budget 2026-27. The reserved fund is meant to provide working capital to SME exporters, help them expand production, and open new international markets for their products.

One thing should be clear. The Rs 300 billion is a reserved allocation inside the Export Finance Scheme. It is not a separate cash grant, and it does not mean that every SME will automatically receive a loan. Banks will process applications under the scheme rules, as explained below.

What Is the Export Finance Scheme?

The Export Finance Scheme is a government financing facility for exporters. It helps exporters get working capital at concessional rates to buy raw material, produce goods and complete export orders. Pak EXIM Bank is the country’s Export Credit Agency, and it manages this scheme in coordination with the State Bank of Pakistan.

For the financial year 2026-27, the government has increased the total EFS envelope from Rs 1,000 billion to Rs 1,500 billion. Out of this total, Rs 300 billion was earmarked on the direction of the Prime Minister for SME exporters, agri-SMEs and new borrowers, because these businesses have traditionally found it hard to get export finance from normal banking channels. A separate Rs 350 billion is available under the Long-Term Financing Facility for export related investment.

The revised EFS limits have been allocated to participating financial institutions, and Pak EXIM has also launched an EFS Digital Portal that connects it with these institutions. Pak EXIM has described the enhanced package’s long term financing at a concessional rate of 2 percent for the first two years and 5 percent for the next eight years, with the government bearing the subsidy cost. The exact rate and terms for your business will be confirmed by the bank under the facility you apply for.

What Has Changed for SMEs

The 8 November announcement is part of a series of steps for SME exporters in recent days:

• The 80 percent condition is removed. On 5 November 2026, Prime Minister Shehbaz Sharif directed that SMEs will no longer need to show 80 percent of their revenue from exports to qualify for long term financing.
• Banks cannot deviate. The Prime Minister also directed that no bank will be allowed to deviate from the government’s concessional financing schemes for SMEs and exporters.
• An SBP portal is live. The State Bank launched a dedicated SME financing portal on 1 November 2026, and more than 10,000 loan applications were received in the first days.
• A large base of exporters. Officials told the 5 November meeting that about 17,000 SMEs in Pakistan are engaged in exports. The reserved Rs 300 billion is meant mainly for businesses like these.

Who Can Benefit from the Reserved Rs 300 Billion

The reserved allocation is for small and medium businesses that are connected with exports. This includes SME exporters, agriculture based SMEs (agri-SMEs) and new borrowers who have not taken export finance before. The business should be a genuine exporter or export oriented unit that can meet the bank’s requirements, such as business registration, tax record and export orders or export history, as required under the scheme rules.

Please note that the removal of the 80 percent condition does not remove every other condition. Each application is checked by the bank, and the final decision is made under the State Bank and Pak EXIM rules.

How to Apply for SME Export Finance

There is no separate application form for the Rs 300 billion announcement. Export finance under the EFS is provided through banks. An SME exporter should follow these steps:

1. Contact your own bank, or a participating financial institution, and ask for Export Finance Scheme financing for SME exporters.
2. Ask the bank about the reserved SME allocation, the markup rate, the limit and the documents required in your case.
3. Prepare your business documents, such as registration, NTN and tax returns, bank statements and export orders or export record.
4. You can also use the State Bank’s SME financing portal, which was launched on 1 November 2026 for easy access to SME loans.
5. Submit the application and complete the bank’s checking process. The bank decides the approval under the scheme rules.

If a bank refuses to process your application under the concessional scheme without a valid reason, you can complain through the State Bank of Pakistan’s complaint system. The Prime Minister has directed that banks must not deviate from these schemes.

One Important Clarification

The Rs 300 billion Export Finance allocation and the Rs 350 billion Long-Term Financing Facility are two separate provisions. They should not be added together and treated as one loan. Also, an allocation is not the same as disbursement. It means the money has been set aside for this purpose. Your business will receive financing only after your application is approved by a bank under the scheme rules.

Fraud Warning

• Export Finance Scheme financing is given only through banks and participating financial institutions. No private agent can arrange or guarantee it.
• Never pay any person a fee or commission for “approval” of your SME loan. Genuine applications are processed by banks under State Bank rules.
• Use only the official channels: Pak EXIM Bank, the State Bank of Pakistan, and your own bank.
• If someone demands money in the name of this scheme, report it to the State Bank of Pakistan.

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FAQs

What is the Rs 300 billion SME Export Finance announcement?

On 8 November 2026, the Adviser to the Finance Minister, Khurram Schehzad, announced that the entire Rs 300 billion allocation under the Export Finance Scheme is reserved exclusively for SME exporters. The money will be provided through Pak EXIM Bank and participating financial institutions to support working capital, production and new export markets.

Who can get financing under the reserved Rs 300 billion?

The reserved allocation is for small and medium exporters, agriculture based SMEs and new borrowers who have not used export finance before. The business must meet the bank’s eligibility requirements, such as registration, tax record and export orders or export history. Final approval is given by the bank under State Bank and Pak EXIM rules.

What is the total size of the Export Finance Scheme now?

For the financial year 2026-27, the total Export Finance Scheme envelope has been increased from Rs 1,000 billion to Rs 1,500 billion. Out of this total, Rs 300 billion is reserved for SME exporters. A separate Rs 350 billion is available under the Long-Term Financing Facility for export related investment and machinery.

Has the 80 percent export condition for SMEs been removed?

Yes. On 5 November 2026, Prime Minister Shehbaz Sharif directed the removal of the condition that an SME must earn at least 80 percent of its revenue from exports to qualify for long term financing. He also directed that no bank will be allowed to deviate from the concessional financing schemes for SMEs.

How can an SME apply for export finance?

There is no separate form for this announcement. Apply through your own bank or a participating financial institution and ask for Export Finance Scheme financing under the reserved SME allocation. You can also use the State Bank SME financing portal launched on 1 November 2026. The bank will check your documents and decide under the scheme rules.

Disclaimer: Parho Pakistan is an independent information website and is not affiliated with the Finance Ministry, the State Bank of Pakistan or Pak EXIM Bank. This page is for guidance only. Financing is approved only by banks under the official rules of the Export Finance Scheme.