Pakistan eyes export growth, wider SME financing to boost economy

November 11, 2026 (MLN): Pakistan needs to expand its export base, improve access to financing for small and medium enterprises (SMEs), raise productivity and remove structural barriers to achieve sustainable economic growth, Minister of State for Finance Bilal Azhar Kayani said on Tuesday.

Addressing a special forum titled “Economic Security: Pakistan’s Economic Bottlenecks – Diagnosis and Prescription”, he said exports were the only sustainable source of foreign exchange earnings, stressing the need to diversify export products, tap new markets and strengthen existing export-oriented sectors.

Highlighting the Export Facilitation Scheme (EFS), he said the facility supported exporters through duty-free imports of inputs used in goods intended for export. However, its coverage remained limited, with fewer than 1,000 SMEs benefiting from the scheme out of an estimated 10,000, according to APP.

He said the government was working to simplify procedures and remove regulatory obstacles to enable more businesses to benefit from existing export support facilities.

Sharing findings from consultations with around 50 SME exporters conducted on the Prime Minister’s direction, Bilal Azhar Kayani said access to finance, rather than energy costs, emerged as the primary concern among participants.

He noted that several established exporters with years of operational experience continued to face difficulties securing financing available under existing schemes.

The minister said the Prime Minister had prioritized improving SME financing and was engaging banks to review their performance in extending credit to SMEs, small farmers and low-cost housing projects.

He stressed that economic policymaking required active private-sector participation, adding that businesses dealing with regulatory and operational challenges should be involved in developing policies rather than keeping the process confined to separate government departments.

He said recommendations from private-sector-led working groups had contributed to several tax measures introduced in the recent budget. These included eliminating super tax for businesses earning between Rs150 million and Rs500 million, reducing it by two percentage points for businesses earning above Rs500 million and removing super tax on exporters.

Tax relief had also been extended to salaried individuals, he added.

Regarding reforms to the Export Development Fund, he said the government had accepted proposals to transfer its management to private-sector leadership and abolish the export development surcharge. The fund's board was now headed by exporters, with 89 exporters represented on it.

He also called for stronger coordination between federal and provincial governments to improve the utilization of development funds, noting that combined development spending by both levels of government exceeded Rs4 trillion.

Linking education with economic productivity, he said improvements in the education system were essential for developing a skilled workforce and securing long-term economic benefits.

He further emphasized the need to empower local governments by bringing decision-making authority and resources closer to citizens to address local issues effectively.

On governance, Bilal Azhar Kayani stressed improving the capacity and quality of public officials, ensuring respectful and informed engagement with citizens and reducing discretionary powers in the implementation of government policies and schemes.

Copyright Mettis Link News