(export financing Pakistan, export refinance scheme, SBP support exporters, SME export loans, textile export financing)
Why Export Financing Matters
Pakistan produces:
- Textiles from Faisalabad & Karachi
- Sports goods from Sialkot
- Rice, leather, IT services & more
These products compete globally — but exporting isn’t cheap:
Buy raw materials
Manufacture & pack
Ship & insure
Wait for payment from foreign buyers
That’s why export financing schemes exist:
To give businesses cash flow, lower cost loans & confidence to take bigger orders.
Without these, many SMEs couldn’t go beyond local markets.
1. What Is Export Financing
It’s financial help offered to exporters, so they can:
Produce goods before shipment (pre‑shipment financing)
Bridge gap until they get paid by buyer (post‑shipment financing)
This help comes as:
- Low‑cost loans
- Export refinance facilities
- Guarantees & insurance
Mostly supported by:
State Bank of Pakistan (SBP)
Commercial banks
Development banks & Islamic banks
2. Key Export Financing Schemes in Pakistan
| Scheme | What it offers |
|---|---|
| Export Finance Scheme (EFS) | Short‑term loans at below‑market rates for raw material & production |
| Long‑Term Financing Facility (LTFF) | Long‑term loans (3–10 years) for buying machinery & expansion |
| Islamic Export Refinance Scheme (IERS) | Shariah‑compliant financing for exporters |
| Export Credit Guarantee Scheme | Covers non‑payment risk from foreign buyers |
| SBP Refinance Facility for Modernization | Helps upgrade plants & meet global standards |
| SME export financing | Smaller ticket loans to help SMEs go global |
3. How Does It Work? (Simple View)
Exporter gets export order (e.g., $200,000)
Applies to bank under EFS
Gets loan at low markup (e.g., 3–5% vs. market 12–16%)
Uses money to produce & ship goods
Gets payment from buyer
Repays bank
Result: can accept bigger orders & stay competitive globally.
4. Who Can Apply
Registered exporters with valid export order / letter of credit (LC)
Sectors: textiles, leather, rice, sports goods, surgical instruments, IT & software
SMEs with documented export history (usually 1–2 years)
Documents often needed:
- NTN & SECP/firm registration
- Past export record
- Export contract / LC copy
- Production & cash flow plan
5. Real Impact of Export Financing
- Textile mills used EFS to buy cotton & keep looms running year‑round
- Sialkot sports goods firms expanded with LTFF, now export FIFA‑approved footballs
- IT firms used working capital loans to hire developers for new projects
- SMEs got first export order because bank was willing to finance after SBP guarantee
6. Why Government Supports Export Financing
Keeps factories running & people employed
Increases foreign exchange reserves
Makes Pakistani products cheaper in global market
Helps SMEs join international value chains
Supports product diversification (beyond textiles)
Every $1 exported brings jobs & tax revenue.
7. New Focus Areas in 2025
Green & sustainable exports (solar products, organic textiles)
Women‑led export businesses
IT & digital services (software, BPO)
Agro‑products (fruits, honey, spices)
Product branding & packaging upgrades
8. Future Vision (by 2030)
Pakistan aims to:
Double non‑textile exports
Automate export financing (fast digital approvals)
Launch more Islamic financing products
Support startups selling digital products abroad
Strengthen export insurance to reduce risk
9. Tips for Exporters Applying
Keep documents & accounts updated
Build relationship with bank export department
Learn basics of trade finance & LCs
Explore both conventional & Islamic financing
Join export training from TDAP & chambers
Strong paperwork = faster approval & bigger credit limits.
10. Beyond Money: Other Support for Exporters
Export development grants for trade fairs
Training in branding, packaging & compliance
Help desks from TDAP & SMEDA
Online market portals to find buyers
Support for ISO, HACCP & quality certifications
11. Why SMEs Should Think Global
- Export orders often bigger & more stable
- Dollar earnings protect against rupee depreciation
- Learning new standards improves local products too
- Small exporters often get repeat buyers abroad
Even a small workshop in Gujranwala or Hyderabad can export if financing is solved.
From Workshop to World Market
Export financing schemes:
- Unlock working capital
- Reduce cost of production
- Encourage risk‑taking
If you run a factory, workshop, or even an IT startup:
You don’t have to wait for cash to grow use these schemes & think global.
For updates on new SBP schemes, SME support & export guides: 🌍 Visit TeezJobs.com Your partner for business, jobs & trade growth!
