The State Bank of Pakistan (SBP) has unveiled a major policy shift aimed at bolstering small and medium enterprises (SMEs) by significantly raising the loan limits under revised SME Loan Regulations.
As outlined in a new circular from the central bank, small businesses can now secure loans of up to Rs100 million, while medium-sized enterprises can access up to Rs500 million in financing. This represents a substantial boost, with loan limits for small enterprises increasing by 300% and those for medium businesses by 150%.
Industry experts predict that this move will stimulate private sector borrowing, especially in light of recent interest rate cuts. The provision of affordable financing is expected to drive economic growth nationwide by empowering entrepreneurs to launch new ventures and expand existing operations.
Additionally, the SBP has introduced a new incentive package to encourage money changers to bring more foreign currency into Pakistan, with the goal of boosting remittances and strengthening foreign exchange reserves.
According to another SBP circular, exchange companies will receive tiered incentives based on the volume of remittances they facilitate. For every dollar brought into the country, companies will earn Rs2. If the company manages to increase remittances by 5% or brings in up to $25 million annually, the reward will rise to Rs3 per dollar. For those bringing in more than $25 million, the rate will increase to Rs4 per dollar.
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