Prime Minister Muhammad Shehbaz Sharif has directed that small and medium enterprises (SMEs) no longer need to earn 80 per cent of their revenue from exports to qualify for long-term financing. The directive was issued on Thursday, November 5, at a high-level meeting on facilitating export-oriented SMEs, according to a Prime Minister's Office news release. He also said no bank should be allowed to step away from the concessional financing scheme meant for SMEs and exporters, which offers loans on subsidised terms.
Support for exporters and their laboratory needs
Shehbaz said the government would provide all possible support to raise the capacity and skills of SMEs and help their businesses grow. He asked for better accreditation standards, more laboratories and simpler regulatory procedures so that exporters face fewer hurdles. He also directed authorities to set up modern laboratories, so that exporters can receive testing and certification services at their doorsteps.
The meeting was briefed on recent consultations with SME representatives. Those sessions raised concerns about taxes, refunds, provincial levies, accreditation, logistics, payments and financing. Provincial levies are charges imposed by the provincial governments, and refunds refer to money owed back to businesses by the state.
Figures from the briefing
Officials told the meeting there are about 17,000 export-oriented SMEs in Pakistan. The State Bank of Pakistan, the central bank, launched an online portal on November 1 to make it easier for SMEs to apply for loans, and it has since received more than 10,000 applications. The meeting also heard that Rs300 billion has been allocated under the Export Finance Scheme for SMEs and new exporters. A further Rs350 billion has been earmarked this year for the long-term financing facility (LTFF).
The briefing said steps are being taken to increase Pakistan's exports to African countries. Among those attending were Deputy Prime Minister and Foreign Minister Ishaq Dar, several federal ministers, the Prime Minister's adviser Haroon Akhtar and State Bank Governor Jameel Ahmad. No date for implementing the change to the export condition was announced at the meeting.
Aasan alfaaz mein
Wazir-e-Azam Shehbaz Sharif ne hukm diya hai ke chhote aur darmiyane karobar (SMEs) ko lambi muddat ke qarz ke liye 80 fisad exports ki sharat khatam ki jaye. Is ka matlab hai ke chhote karobari qarz ke liye ahal ho sakte hain, lekin is par amal kab hoga, iski tareekh abhi nahi batayi gayi. Koi bank sasta qarz dene wali scheme se peeche nahi hat sakega. Agar aap ka karobar export se jura hai, to State Bank ke portal aur bank ki shartein par nazar rakhein.
