The Securities and Exchange Commission of Pakistan (SECP) has proposed increasing the maximum limit for microfinance and housing loans to Rs5 million as part of a broader revision of financing rules aimed at widening access to formal credit. Released for stakeholder consultation, the proposed amendments would also relax the income threshold governing eligibility for microfinance borrowing, raising the maximum annual income for eligible borrowers to Rs1.5 million from the existing ceiling of Rs1.2 million.
“The Securities and Exchange Commission of Pakistan has proposed increasing the maximum limit for microfinance and housing loans to Rs5 million while raising the eligible borrower annual income threshold to Rs1.5 million.”
Alongside the adjustments to individual borrowing limits, the SECP has proposed substantially expanding the annual turnover bands used to classify small and medium-sized enterprises (SMEs) under its regulatory framework:
- Microfinance & Housing Loan Ceiling: Proposed increase up to Rs5 million.
- Microfinance Borrower Annual Income Cap: Proposed increase from Rs1.2 million to Rs1.5 million.
- Small Enterprise Annual Turnover Limit: Proposed expansion from Rs30 million to Rs400 million.
- Medium-Sized Enterprise Annual Turnover Limit: Proposed expansion from Rs800 million to Rs2 billion.
| Category | Existing Ceiling | Proposed Ceiling |
| Microfinance & Housing Loan Limit | Existing cap | Rs5 million |
| Borrower Annual Income Threshold | Rs1.2 million | Rs1.5 million |
| Small Enterprise Annual Turnover | Rs30 million | Rs400 million |
| Medium Enterprise Annual Turnover | Rs800 million | Rs2 billion |
These revisions will significantly broaden the range of businesses qualifying under SME turnover thresholds. According to the SECP, the updated SME limits have been aligned with recent regulatory revisions introduced by the State Bank of Pakistan (SBP). The amendments have not yet been finalized, and the commission has invited industry stakeholders and other interested parties to submit their comments and recommendations as part of the ongoing consultation process.