ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed increasing the financing limit for microfinance and housing loans to Rs5 million, along with higher financial thresholds for small and medium-sized businesses.
According to the details, the SECP has proposed amendments aimed at increasing financing limits for microfinance, housing and small and medium-sized enterprises (SMEs).
The SECP has made the proposed amendments officially available for comments from concerned stakeholders.
The SECP has said that it has proposed the amendments in order to promote business activities in the country and also make financial services more accessible to the low-income strata of society.
According to the proposed amendments, the ceiling for financing in the case of microfinance and housing finance will be raised to Rs5 million.
It has also been proposed to raise the annual income threshold of applicants for microfinance to Rs1.5 million from Rs1.2 million.
In the case of small enterprises, the threshold of annual turnover has been proposed to be raised from Rs150 million to Rs400 million. While the annual turnover threshold of medium enterprises will be raised from Rs800 million to Rs2 billion.
An SECP spokesperson said the proposed new thresholds for SMEs have been aligned with recent policy changes introduced by the State Bank of Pakistan, which, according to the commission, would provide greater relief to the business community.
The proposed amendments will be finalized after consultation with relevant stakeholders.
