Regulatory Alerts2025-11-06 | SH&SFD Circular No. 05 of 2025Added · Updated
Revised Prudential Regulations for Small and Medium Enterprise Financing
The State Bank of Pakistan establishes revised prudential regulations for banks and DFIs regarding Small and Medium Enterprise financing, defining SMEs by annual sales turnover up to PKR 800 million. The rules mandate per-party exposure limits of PKR 100 million for small enterprises and PKR 500 million for medium enterprises, alongside a PKR 50 million cap on clean facilities. Banks are required to implement digital onboarding, utilize credit scoring models, and process applications within 15 working days, while adhering to specific classification and provisioning criteria for non-performing loans.
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