Finance Minister Muhammad Aurangzeb emphasized the need for Pakistan to increase its exports from Rs1 trillion to Rs1.5 trillion, while simultaneously expanding financial assistance to small and medium-sized enterprises (SMEs) involved in the export supply chain.
He highlighted the importance of diversifying the export base across various products, services, and market segments, without compromising the performance of traditional export sectors. Aurangzeb made these remarks during a recent event, where he announced that approximately Rs350 billion had been earmarked specifically for SMEs under the Long-Term Financing Facility (LTFF).
He argued that export support should extend beyond the final exporter to benefit all businesses within the entire value and supply chain. “While the end exporter receives subsidized financing, the entire supply chain should also have access to such support,” he stated. Aurangzeb pointed out that SMEs and medium-sized enterprises play a crucial role in supplying major exporting companies and therefore deserve comparable financing assistance.
In a significant development, Aurangzeb assured that funds channeled through Pak EXIM Bank via commercial banks would effectively reach SMEs. He stressed that Pakistan’s future economic growth must be driven by exports and led by the private sector, noting that the primary challenge now lies in sustaining growth rather than achieving it.
He reiterated the government’s commitment to diversifying exports in terms of products, services, and market segments. Aurangzeb also mentioned that the government is leveraging the current fiscal and external-account space to promote export-led expansion.
Referring to the recent budget, he highlighted measures such as eliminating the super tax for companies deriving over 80 percent of their revenue from exports and removing advance tax, aimed at encouraging export growth. Additionally, he noted that exporters are being offered financing at a concessional rate of 4.5 percent, despite recent hikes in the policy rate, attributing this partly to imported inflation caused by global conflicts.
Describing Pakistan EXIM Bank as a vital facilitator, Aurangzeb underscored its role in supporting export growth through export refinance and the LTFF. He concluded by stating that the government is also focused on making energy costs more competitive to create an environment where the private sector can fully realize its export potential.
