Pakistan Orders SBP and SMEDA to Tackle SME Credit Crunch, Signals Fixed Tax and Power Incentives
A follow-up review will test concrete plans from SBP, SMEDA and TDAP to unlock financing, cut energy costs and upgrade export certification.
Overview
- Special Assistant Haroon Akhtar Khan directed the State Bank and SMEDA to prioritize solutions to SME credit access problems identified by Sialkot’s export cluster.
- The government said it is working on a fixed tax regime intended to give small and medium firms a simpler, more predictable framework.
- An electricity consumption-based incentive was announced under which industrial tariffs would decline as factories use more units.
- SMEDA and TDAP were tasked to devise a strategy to establish proper accreditation and to upgrade existing labs to meet international standards for exports such as surgical instruments.
- SMEDA was told to present a comprehensive plan with measurable results at an upcoming review, though no implementation timelines were provided.