Technology, Business & Political News from Pakistan

SBP Raises Financing Limits for SMEs to Rs. 500 Million, Boosting Economic Growth

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The State Bank of Pakistan (SBP) has increased financing limits for Small and Medium Enterprises (SMEs), allowing them to secure loans of up to Rs. 500 million. This move aims to strengthen the SME sector, which is crucial to Pakistan’s economic development. As per a circular issued on Monday, small enterprises can now borrow up to Rs. 100 million from individual banks or Development Finance Institutions (DFIs), while medium enterprises can access up to Rs. 500 million in funding.

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The SBP also introduced a provision allowing banks and DFIs to deduct the value of liquid assets—such as bank deposits, Pakistan Investment Bonds, and Treasury Bills—held under their lien when calculating exposure limits. This change is expected to significantly enhance SMEs’ access to credit, enabling them to grow and contribute more effectively to the national economy. The SBP’s initiative reflects its ongoing efforts to promote financial inclusion and ensure the stability of Pakistan’s economic landscape.

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