KARACHI: The Board of Directors of SME Leasing Limited (PSX: SLL) has formally approved a comprehensive Winding Down Plan for the company, aimed at facilitating an orderly exit from operations, according to a stock exchange filing on Wednesday.
The plan, which includes multiple structural changes, was also endorsed by the Board of SME Bank Limited, its parent company, during a board meeting held on May 6, 2025.
Subsequently, SME Bank issued a formal letter to the Securities and Exchange Commission of Pakistan (SECP) on May 13, requesting a deferment of the liquidation proceedings already initiated against SME Leasing. The SECP had earlier commenced steps toward a winding-up order under regulatory provisions.
As per details disclosed in the PSX filing, the Winding Down Plan entails the closure of all operational branches, employee layoffs, relocation of the company’s head office, and the sale or disposal of its immovable assets. Additionally, the company plans to divest its leased portfolio to another functional leasing entity.
The plan also outlines the potential sale of SME Leasing Limited itself, with the expectation that this route would yield a higher return and a shorter resolution period than the conventional court-led liquidation process.
This move represents a strategic pivot by the parent company, SME Bank Limited, to preserve asset value while attempting to minimize disruptions to clients and stakeholders. The SECP’s decision on whether to accept the deferment request remains pending.
SME Leasing Limited has long struggled with operational viability amid mounting regulatory pressure and financial underperformance, prompting stakeholders to consider alternate exit strategies beyond a forced wind-up.
