Export Insurance and Financing Measures Can Boost SMEs and Exports Mian Zahid Hussain

Business leader Mian Zahid Hussain has welcomed new measures aimed at supporting SME exporters and increasing Pakistan’s exports.

He praised the Rs3 billion export-insurance risk pool established through the Export Development Fund and EXIM Bank of Pakistan.

He also welcomed expanded export financing. According to him, the measures can reduce payment risks and improve access to business capital.

Focus on SME Exporters

Mian Zahid Hussain said Pakistan needs stronger export growth. He noted that merchandise exports fell 5.97 percent to $30.1 billion in FY2025–26.

Meanwhile, imports reached $69.6 billion during the same period. As a result, the trade deficit widened 21.57 percent to $39.5 billion.

He said overseas Pakistanis sent $41.6 billion in remittances. These inflows provided important foreign-exchange support.

However, he stressed the need for greater value addition. He also called for wider export participation and access to new markets.

Export Finance Scheme Expanded

Mian Zahid Hussain welcomed the 50 percent increase in the Export Finance Scheme.

The financing envelope will rise from Rs1 trillion to Rs1.5 trillion for FY2026–27.

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He particularly welcomed the allocation of Rs300 billion for SME exporters. The amount will also support agricultural SMEs and new borrowers.

Eligible businesses can access the financing through banks and financial institutions.

He said timely funding can help businesses increase production. It can also help exporters fulfil overseas orders.

However, he stressed the need for clear bank guidance. He also called for faster and more efficient processing.

Rs350 Billion for Export Growth

He also welcomed Rs350 billion in financing lines under the Long-Term Export Growth Financing Facility.

The facility can support the purchase of modern machinery and equipment. It can also help businesses upgrade existing plants and production facilities.

Furthermore, modernisation can improve production efficiency. It can also support more environmentally sustainable manufacturing.

This could help Pakistani exporters meet international environmental requirements.

Insurance to Protect Small Businesses

Mian Zahid Hussain said smaller businesses often face risks when dealing with new overseas buyers.

Non-payment can affect wages and supplier payments. It can also disrupt production.

The Rs3 billion insurance pool can help protect exporters against such risks.

At the same time, financing schemes can address working-capital needs.

He also welcomed the reinsurance agreement between EXIM Bank and ICIEC. He said the HBL–EXIM Bank Master Policy was another positive step.

According to him, these measures can strengthen export-related risk protection.

SME Financing Shows Growth

Mian Zahid Hussain noted growth in SME financing.

Financing increased 30.5 percent to Rs901.6 billion by June 2026. Meanwhile, the number of borrowing businesses rose 15.18 percent to 318,585.

He said these gains should lead to higher national exports.

He also called for greater opportunities for new manufacturers. Businesses using local agricultural and industrial resources should receive particular attention.

Such companies can help develop competitive export products.

Digital Portal Can Speed Up Financing

He also highlighted the EXIM Bank EFS Digital Portal.

The portal connects EXIM Bank with financial institutions. It could help exporters receive faster and more coordinated financing services.

However, its success should be measured through timely decisions. It should also provide smoother service delivery.

Mian Zahid Hussain urged banks to clearly publish application requirements. Financing terms and processing timelines should also be easily available.

EDF Allocation for Competitiveness

He appreciated the allocation of Rs24 billion from the Export Development Fund (EDF).

The funds will support business facilitation, research and skills development. They will also promote greater competitiveness.

He said the new approach should focus less on infrastructure spending. Instead, it should strengthen exporters’ capabilities.

He recommended investment in product improvement and certification. He also called for better packaging and market intelligence.

Demand-linked training should also receive greater attention.

Broader Reforms Needed

Mian Zahid Hussain said financing alone will not be enough to increase exports.

He called for continued efforts to retain GSP+ status. Pakistan should also meet its relevant commitments.

In addition, he urged authorities to reduce energy costs. He also called for faster tax refunds and a better business environment.

He said these steps, combined with export financing and insurance, can help Pakistani businesses compete in international markets.