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State Bank of Pakistan and SMEDA Expand Concessional Credit Quotas to 7%

State Bank of Pakistan and SMEDA Expand Concessional Credit Quotas to 7%Financing & Grants
By: Financial Services Desk
January 29, 2026
2 Comments
4 min read
SBP expands collateral-free credit lines and subsidized working capital refinancing facilities for certified micro, small, and medium industrial units.

KARACHI: In a landmark decision to bolster domestic manufacturing, the State Bank of Pakistan in partnership with SMEDA has notified an expanded lending quota for commercial banks catering to priority SME sectors.

Under the revised concessionary framework, certified manufacturing units can access working capital and machinery upgrade loans at markups capped between 0% and 7%, with government-backed credit risk guarantees absorbing up to 60% of lender default risk.

Entrepreneurs can evaluate their debt capacity, calculate EMI amortizations, and verify bank branch eligibility using the integrated tools on banks.smeda.org.

Priority sector quotas have been dedicated to agro-processing, medical devices, software exports, and renewable energy components.

Key Strategic Highlights & Directives

  • Priority stall allocation with up to 50% rental subsidy for SMEDA-certified manufacturers.
  • Instant on-site registration on SMERP (smerp.smeda.org) with digital QR verification.
  • Direct B2B business matchmaking linkages established with international delegations and trade commissioners.
  • Concessional working capital lines and export pre-shipment financing under SBP facilities.

"Our economic revitalization is squarely anchored on unlocking the export vitality of small enterprises. Expo Faisalabad bridges the gap between grassroots manufacturers and multi-billion-dollar international supply chains."

— Haroon Akhtar Khan, Special Assistant to Prime Minister
SMEDA Consultation
Industrial Technology
Official Documentation
State Bank Circular & SMEDA Financial Desk
Tags:#SBP#Concessional Loans#Credit Guarantee#Banking
Financial Services Desk

Financial Services Desk

Credit Policy Wing

Official communications and media relations cell of the Small and Medium Enterprises Development Authority, Federal Ministry of Industries & Production, Government of Pakistan.

Comments (2)

C
Chaudhry Tariq Mehmood
March 2, 2026

The priority stall allocation and 50% rental subsidy announced here has given our SME cluster direct exposure to GCC buyers. Extremely timely initiative by SMEDA.

E
Engr. Kamran Aslam
March 3, 2026

Will the on-site facilitation desk at the expo also assist existing manufacturers with technical energy audit grants and SMERP QR-code verifications?

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