PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION

PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi.

Tel: 0092-21-34522769, 34522685, 34544765

Fax: 0092-21-34543774, E-mail: info@phmaonline.com





To: All Members of the Association (Southern & Northern Zone)

                                                                                        Ref. No. PHMA/016/2026
Dated: 18th July 2026

Subject: REVISION IN DEFINITION OF SMES UNDER PRUDENTIAL REGULATIONS FOR SME FINANCING

Dear Members,

The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) would like to apprise its valued members that the State Bank of Pakistan (SBP), vide SH&SFD Circular No. 03 dated July 16, 2026, has revised the definition of Micro, Small and Medium Enterprises (MSMEs) under the Prudential Regulations for SME Financing, in order to align the SME classification with current economic realities.

As per the revised definitions, the classification based on Annual Sales Turnover is as follows:

Enterprise Category

Annual Sales Turnover

Micro Enterprise

Up to PKR 30 Million

Small Enterprise

Above PKR 30 Million to PKR 400 Million

Medium Enterprise

Above PKR 400 Million to PKR 2,000 Million

Start-up

A Micro, Small, or Medium Enterprise up to 5 years old shall be classified as a Start-up

The above amendments have come into force with immediate effect.

PHMA members are advised to take note of the revised SME definitions, particularly for matters relating to SME financing and banking facilities, and may approach their respective banks/financial institutions accordingly.

For members' information and ready reference, SBP's SH&SFD Circular No. 03 dated July 16, 2026, along with Annexure-I – Updated Prudential Regulations for SME Financing, is attached herewith.

 

Best Regards,

Muhammad Jawed Bilwani        Muhammad Babar Khan     
Patron In-Chief                            Central Chairman                  




SH_SFD_Circular_No_03.pdf


1784561957_6083_SH_SFD-Annexure-I-Updated_Prudential_Regulations_for_SME_Financing.pdf


PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION (PHMA)
Central Office: PHMA House, 37-H, Block-6, P.E.C.H.S., Karachi-74500, Pakistan
+92-21-34544765    +92-21-34544764 / 34545683    +92-21-34543774    +92-309-3337462
Offices: Karachi   |   Faisalabad   |   Lahore   |   Sialkot

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