Pakistan has expanded its Export Finance Scheme (EFS) to Rs1.5 trillion for FY2026–27, increasing the financing available to eligible exporters by Rs500 billion.
The programme previously had a Rs1 trillion financing envelope. Of the new total, Rs300 billion has been earmarked for small and medium-sized exporters, agricultural SMEs and new borrowers.
The government says the enhanced limits have been allocated to participating financial institutions.
Two different financing needs
The EFS primarily supports working capital, which exporters need to purchase materials, pay suppliers and produce goods before receiving payment from overseas customers.
Alongside the expansion, the government has introduced a separate Rs350 billion Long-Term Export Growth Financing Facility.
That facility is intended to support investment in machinery, new production capacity and upgrades to existing factories. It may also help exporters meet environmental and sustainability standards required in overseas markets.
Pakistan’s Export-Import Bank administers export financing arrangements in coordination with the State Bank of Pakistan.
Why the expansion matters
Smaller exporters often struggle to secure financing on suitable terms, particularly when they need to fulfil orders before receiving payment.
Setting aside Rs300 billion for SMEs and new borrowers could widen participation beyond established export businesses.
The long-term facility addresses a different constraint: outdated equipment and limited production capacity. Investment in modern machinery may help firms improve efficiency and produce higher-value goods.
However, the larger financing envelope is not the same as money already disbursed. The outcome will depend on loan eligibility, borrowing costs, banks’ implementation and actual demand from exporters.
The measures form part of the government’s broader effort to increase export earnings and reduce reliance on external borrowing.
For Pakistan, the test will be whether easier access to financing translates into more competitive products, additional overseas orders and sustained foreign exchange earnings.
Sources: Press Information Department, Government of Pakistan; Export-Import Bank of Pakistan.