ISLAMABAD: The State Bank of Pakistan (SBP) has announced a major decision to support small and medium enterprises (SMEs) and industries by increasing loan limits as part of its revised SME Loan Regulations.
According to a recent circular issued by the SBP, businesses can now access loans of up to Rs100 million for small enterprises and up to Rs500 million for medium-sized enterprises.
This represents a significant increase, with loan limits raised by 300% for small businesses and 150% for medium businesses.
Experts suggest that this move will encourage more private sector borrowing, especially following the recent cut in interest rates. With more affordable bank loans available, economic development is expected to pick up, allowing entrepreneurs to invest in new ventures and expand existing businesses.
The SBP has also rolled out an incentive package for money changers to promote the inflow of dollars into Pakistan, aiming to boost remittances and strengthen foreign exchange reserves.
Per the SBP’s circular, exchange companies will receive varying incentives based on the volume of remittances they bring into the country. Companies issuing fixed home remittances will receive Rs2 for every dollar.
If remittances increase by 5% or reach up to $25 million annually, the incentive rises to Rs3 per dollar. For companies bringing in over $25 million, the reward increases to Rs4 per dollar.
