Prime Minister Shehbaz Sharif calls for faster financing to small businesses, farmers and homebuyers, directing the State Bank and Finance Ministry to address lending bottlenecks and improve access to credit.
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed the State Bank of Pakistan (SBP) and the Finance Ministry to take strict action against banks failing to facilitate loans for small and medium-sized enterprises (SMEs), agriculture and housing under government-backed initiatives.
Chairing a review meeting on improving access to financing for priority sectors in Islamabad, the prime minister said the development of SMEs, housing and agriculture was a government priority to strengthen the economy and create employment opportunities for young people.
He praised banks demonstrating strong performance in facilitating loans to the priority sectors and called for equal cooperation from financial institutions, noting that banks played a crucial role in private-sector development.
Sharif directed the State Bank and Finance Ministry to show no leniency toward banks adopting a slow approach to lending for farmers, SMEs and beneficiaries of the Prime Minister’s Apna Ghar Scheme.
He said SMEs had significant potential to contribute to economic growth, boost exports and create employment opportunities.
The prime minister also described agriculture as the backbone of the national economy, emphasizing efforts to increase exports through value addition of agricultural products. He said the Apna Ghar Scheme would promote housing and construction while supporting several related industries.
Sharif instructed Finance Minister Muhammad Aurangzeb to address financing-related problems faced by stakeholders in the SME, agriculture and housing sectors and develop a comprehensive strategy.
He also directed the SBP and Federal Board of Revenue (FBR) to work together to resolve tax-related issues faced by SMEs and exporters. The prime minister called for a comprehensive risk-coverage strategy to facilitate easier access to loans for small and medium-sized businesses.
Financing figures and targets
A briefing informed the meeting that significant progress had been made in extending priority-based financing to housing, agriculture and SMEs.
As of Oct. 23, 2026, loans worth Rs511 billion had been approved under the Prime Minister’s Apna Ghar Programme, covering 86,899 loans. Of these, Rs91 billion had been disbursed to 15,584 applicants.
The overall housing finance portfolio had reached Rs455 billion, benefiting 187,317 borrowers.
Agricultural financing stood at Rs1,329 billion, benefiting approximately 3.5 million people, while SME financing reached Rs1,148 billion, with 342,458 businesses receiving loans.
The government has set targets to increase financing in both agriculture and SMEs to Rs1,500 billion by the end of fiscal year 2027.
The briefing also highlighted measures introduced to improve access to credit, including risk-sharing arrangements, credit guarantees, simplified loan procedures, reduced documentation requirements and digital financial services.
The SBP is working on three key pillars to expand lending to priority sectors: regulatory improvements, risk and cost-sharing between the government and banks, and the promotion of digital facilities.
The recently launched SME Connect Digital Portal, available at smeconnect.sbp.org.pk, will allow business owners to apply for loans and track the progress of their applications.
The meeting was also presented with performance indicators for commercial banks across the three priority sectors. The prime minister commended banks that had demonstrated strong performance.
Federal ministers Ahsan Iqbal, Rana Tanveer Hussain, Dr. Musadik Malik, Mian Riaz Hussain Pirzada, Muhammad Aurangzeb, Attaullah Tarar and Shaza Fatima Khawaja attended the meeting, along with Adviser to the Prime Minister Haroon Akhtar, Minister of State Bilal Azhar Kayani, SBP Governor Jameel Ahmad, members of the National Assembly Hafizuddin and Chaudhry Iftikhar Nazir, senior officials and representatives of leading commercial banks.
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