The State Bank of Pakistan (SBP) has announced a significant decision for supporting small and medium enterprises (SMEs) and industries by increasing loan limits under some changes to its SME Loan Regulations.

According to a recent circular issued by the State Bank regarding the amended loan regulations, businesses can now access loans of up to Rs100 million for setting up small enterprises and up to Rs500 million for medium-sized businesses. This marks a substantial increase in loan availability, with the limit for small businesses raised by 300% and for medium businesses by 150%.

Experts believe that this initiative will encourage private sector borrowing, particularly with the recent cut in interest rates. The availability of affordable bank loans is expected to accelerate economic development across the country, enabling entrepreneurs to invest in new ventures and expand existing ones.

Also Read: State Bank offers incentives for money changers bringing dollars

Meanwhile, the State Bank of Pakistan (SBP) has introduced an attractive incentive package for money changers who facilitate the influx of dollars into the country.

This initiative aims to boost remittances and strengthen the country's foreign exchange reserves.

According to a circular released by the SBP, exchange companies will receive varying amounts for each dollar brought into Pakistan based on the volume of remittances. Specifically, companies issuing fixed home remittances will earn Rs2 for every dollar.

If remittances increase by 5% or reach up to $25 million annually, the reward rises to Rs3 per dollar. For money changers bringing in more than $25 million in remittances, the rate will be Rs4 per dollar.