Business Desk 
Nov 10, 2025
The State Bank of Pakistan (SBP) on Monday directed banks and development financial institutions (DFIs) to introduce end-to-end digital onboarding for small and medium enterprises (SMEs) via video Know Your Customer (KYC), Global Positioning System (GPS), and geo-tagged data to verify business credentials.
Under the new framework, all SME credit-related documentation will now be accepted in digital form, including renewals, declarations, and agreements. Banks and DFIs will also need to execute e-agreements using secure digital signature platforms.
The central bank spokesperson said: "The new framework will ease SME financing, reduce manual verification, and build a robust digital ecosystem for small businesses."
According to SBP, banks are also required to develop digital credit scoring models to partner with fintechs to assess creditworthiness based on transactional data, supply chain records, and account activity.
It is worth noting that small enterprises (micro and above micro) can avail funded and non-funded facilities of up to Rs100 million, while medium enterprises can access financing of up to Rs500 million from one or multiple financial institutions.
Banks and DFIs are allowed to deduct the value of liquid assets — such as bank deposits, certificates of investment, Pakistan Investments Bonds (PIBs), treasury bills, and National Saving Scheme securities — held under perfected lien when calculating per-party exposure limits.
