Minister of State for Finance Bilal Azhar Kayani says fewer than 1,000 of an estimated 10,000 SMEs are benefiting from existing export support facilities, prompting efforts to remove regulatory hurdles and improve access to finance.
ISLAMABAD, November 10, 2026: The government is working to simplify financing procedures and remove regulatory barriers to help small and medium enterprises (SMEs) access existing credit and export support facilities following disappointing results in the sector.
Minister of State for Finance Bilal Azhar Kayani said on Tuesday that expanding exports, improving access to finance, increasing productivity and addressing structural bottlenecks were essential for achieving sustainable economic growth.
Addressing a special forum titled Economic Security: Pakistan’s Economic Bottlenecks – Diagnosis and Prescription, he said exports remained the only sustainable source of foreign exchange earnings and stressed the need to diversify products, explore new markets and strengthen existing export sectors.
Referring to the Export Facilitation Scheme (EFS), Kayani described it as an effective mechanism that allows exporters to import inputs duty-free for manufacturing goods intended for export.
However, he acknowledged that the scheme had failed to achieve wider outreach, with fewer than 1,000 SMEs benefiting out of an estimated 10,000 eligible businesses.
He said the government was working to simplify procedures and eliminate regulatory hurdles that prevented more businesses from accessing existing export support facilities.
Sharing findings from consultations with around 50 SME exporters conducted on the Prime Minister’s instructions, Kayani said most participants identified access to finance, rather than energy costs, as their biggest challenge.
He noted that several established exporters, despite operating for years, continued to face difficulties obtaining financing available under existing government schemes.
The Prime Minister had made improving SME financing a priority, and the government was engaging banks to assess their performance in extending credit to SMEs, small farmers and low-cost housing projects, he added.
Private-sector role in economic reforms
Kayani emphasised that economic policymaking should involve businesses dealing directly with regulatory and operational challenges rather than being conducted in isolation.
He said recommendations from private-sector-led working groups had contributed to several tax measures announced in the recent budget. These included eliminating super tax for businesses earning between Rs150 million and Rs500 million, reducing the rate by two percentage points for businesses earning above Rs500 million and removing super tax on exporters.
Tax relief had also been provided to salaried individuals.
Discussing reforms in the Export Development Fund (EDF), the minister said the government had accepted recommendations to place its management under private-sector leadership and abolish the export development surcharge. The fund’s board is now led by exporters, with 89 exporters represented on it.
Focus on governance and productivity
The minister also called for stronger coordination between federal and provincial governments to improve development spending, which exceeds Rs4 trillion collectively.
He highlighted the importance of education in developing a skilled workforce and improving national productivity, while stressing that empowering local governments would help bring resources and decision-making closer to citizens.
Kayani said better governance required strengthening the capacity of public officials, improving their interaction with citizens and reducing discretionary powers in the implementation of government policies and schemes.