Key Points
- The Securities and Exchange Commission of Pakistan has proposed raising the maximum limit for microfinance and housing loans to Rs 5 million ($17,900)
- The Commission also proposed raising the annual income threshold for microfinance borrowers from Rs 1.2 million to Rs 1.5 million
- The draft rules say the limit for other general loans would remain Rs 500,000
ISLAMABAD: Pakistan’s corporate and financial-sector regulator has proposed higher borrowing and business-size limits under its non-bank finance framework, including a Rs 5 million ($17,900) ceiling for housing loans to poor persons and loans to microenterprises.
The Securities and Exchange Commission of Pakistan (SECP) issued the draft amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008, on Sept 17 for public consultation.
The proposed amendments would raise the annual income eligibility threshold for microfinance from Rs1.2 million to Rs1.5 million.
The draft also proposes revised definitions for small and medium enterprises (SMEs), expanding the turnover bands used to determine their classification.
A small enterprise would be defined as a business with annual turnover above Rs 30 million and up to Rs 400 million, compared with the existing upper limit of Rs 150 million cited in the proposed changes.
A medium enterprise would have annual turnover above Rs 400 million and up to Rs 2 billion, compared with the previous upper limit of Rs 800 million.
The notification specifically proposes a Rs 5 million maximum housing loan for a “Poor Person” and a Rs 5 million limit for a “Microenterprise”.
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It retains a separate ceiling of Rs 500,000 for general loans other than housing loans.
The draft notification states: “for housing loan, Rs 5,000,000 or such other limits as the Commission may specify through Circular” and sets the same Rs 5 million ceiling for microenterprise financing.
Pakistan regulator aligns limits with the central bank
The SECP said the proposed SME thresholds were aligned with recent changes introduced by the State Bank of Pakistan.
The amendments were published under S.R.O.1638(I)/2026, the commission giving affected parties 14 days from placement of the draft on its website to submit comments or suggestions.
The proposals are therefore not yet final and may be amended following stakeholder feedback.
The changes form part of Pakistan’s regulatory framework for non-bank financial companies and aim to update financing and business-classification thresholds used by the sector.
