Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 11 of 2017
December 22, 2017

The Presidents/Chief Executives,
All Banks/DFIs

Dear Sir / Madam,

Refinance Scheme for Working Capital Financing
of Small Enterprises and Low-End Medium Enterprises

Enhancing access to finance for small and medium enterprises (SMEs) is one of the priority areas of the State Bank of Pakistan (SBP). In an effort to increase flow of credit to SMEs, a refinance scheme for meeting the working capital requirements of selective sectors of small and low-end medium enterprises is being launched. Following are the main features of the scheme.

  • Financing is initially available to meet the working capital requirements of below mentioned selective SME sectors.
 Information Technology (IT)  Gems and jewelry
 Furniture  Leather industry
 Surgical goods  Fruits, vegetables and food processing & packaging
 Dates processing  Printing & packaging
  • Maximum financing tenor under the scheme is one year.

  • All small enterprises (SEs) as defined in SBP’s Prudential Regulations (PRs) for SME financing are eligible under the scheme. Maximum financing limit for SEs is the same as defined in SBP’s relevant PRs.

  • Medium enterprises (MEs) with annual sales of upto Rs 300 million are eligible under the scheme. Maximum financing limit for MEs under this scheme is Rs 50 million.

  • End user rate is upto 6% p.a. with SBP’s refinance rate of 2% p.a.

The banks/DFIs are advised to review the scheme and apply for refinance limits under the scheme to Director, Infrastructure, Housing & SME Finance Department, SBP, Karachi preferably by January 31, 2018. The scheme will be effective from January 31, 2018. Documentation and reporting requirements under the scheme will be shared in due course.

Encl: Scheme

Yours sincerely,


(Ghulam Muhammad)


About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
SBP Welfare Trust
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.