PBA Applauds SBP’s Revised SME Financing Limits as a Key Driver of SME Growth in Pakistan.

Karachi, October 2024 –This notification comes as part of the recommendations put forward by the
PBA’s SME Task Force. The Pakistan Banks’ Association (PBA) applauds the State Bank of Pakistan
(SBP) for its progressive step in revising per-party exposure limits for Small Enterprises (SE) and
Medium Enterprises (ME), a critical measure aimed at enhancing credit access for SMEs.
Under the revised framework, Small Enterprises (SE R-2) can now avail exposure of up to Rs. 100
million from a single bank or all banks and DFIs combined. Additionally, banks and DFIs are permitted
to deduct liquid assets—such as bank deposits, certificates of deposit/investment, Pakistan Investment
Bonds (PIBs), Treasury Bills, and National Saving Scheme (NSS) Securities—held under their
perfected lien when calculating the per party exposure limit.
Similarly, Medium Enterprises (ME R-3) can now access financing, including leased assets, up to Rs.
500 million from a single bank or all banks and DFIs combined. Similar to small enterprises, banks and
DFIs may deduct liquid assets held under their lien for the purpose of exposure limit calculation.
These changes are effective immediately, and all banks and DFIs have been advised to ensure strict
compliance.
SBP’s revised exposure limits, recommended by PBA’s SME Task Force, will be a significant step
towards advancing financial inclusion and bolstering the country’s SME sector.
Through its task force recommendations focused on Agriculture, SMEs, and Digital & Technology
sectors, PBA continues to work diligently with the SBP and key stakeholders to build an ecosystem that
supports sectoral expansion and unlocks new financing avenues. Although the ecosystem’s full
potential may take time to materialize, it remains critical in promoting sustainable and evident growth
in these crucial sectors of the economy going forward.
Commenting on the recent development, Zafar Masud, Chairman – PBA, said, “SBP’s enhanced SME
financing limits will significantly improve access to funding opportunities, accelerating innovation,
financial inclusion, and entrepreneurship. PBA is committed to collaborating with the SBP to drive
SME growth and foster economic progress across key sectors.”