The Securities and Exchange Commission of Pakistan has proposed increasing the maximum limit for microfinance and housing loans to Rs. 5 million.
The proposed amendments aim to expand access to financing and have been issued for stakeholder consultation, the SECP said on Tuesday.
Under the proposal, the regulator would also increase the annual income threshold for borrowers eligible for microfinance loans. The limit would rise to Rs. 1.5 million from the existing Rs. 1.2 million.
SECP Proposes Higher Income Threshold
The proposed changes are intended to broaden eligibility for borrowers seeking microfinance facilities. Raising the income threshold would allow more individuals to qualify under the revised framework.
The SECP is also proposing changes to the thresholds used to classify small and medium-sized businesses. These revisions would increase the financing scope available to businesses under the regulatory framework.
For small businesses, the maximum annual turnover threshold would rise to Rs. 400 million from Rs. 150 million. The proposed limit represents a significant increase under the revised classification.
SME Limits To Align With SBP Changes
For medium-sized businesses, the SECP has proposed increasing the annual turnover threshold to Rs. 2 billion. The existing threshold stands at Rs. 800 million.
The regulator said the proposed SME thresholds are aligned with recent changes introduced by the State Bank of Pakistan.
The amendments are currently open for consultation with relevant stakeholders. The SECP will consider feedback before finalising the proposed regulatory changes.
If approved, the revisions would increase the limits covering microfinance, housing finance and SME classifications. The regulator said the broader framework is aimed at improving access to finance and supporting businesses and borrowers.
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