The State Bank of Pakistan (SBP) has announced an increase in financing limits for Small and Medium Enterprises (SMEs), raising the cap to Rs. 500 million. This move aims to bolster economic growth by providing greater access to capital for SMEs across the country.

According to a circular issued by the SBP on Monday, small enterprises can now secure financing of up to Rs. 100 million from a single bank or development finance institution (DFI), or collectively from all banks and DFIs. The circular also allows banks and DFIs to deduct the value of liquid assets—such as bank deposits, certificates of deposit/investment, Pakistan Investment Bonds, Treasury Bills, and National Saving Scheme Securities—held under their perfected lien when calculating the per party exposure limit.

For medium enterprises, the financing limit has been set at Rs. 500 million, including leased assets, from a single bank or DFI, or from all banks and DFIs combined. Similar to small enterprises, banks and DFIs can deduct the value of liquid assets held under their perfected lien to calculate the exposure limit.

This enhancement in financing limits is expected to provide SMEs with the necessary financial support to expand their operations, invest in new technologies, and contribute more significantly to the national economy.