Prime Minister Shehbaz Sharif has directed the State Bank of Pakistan (SBP) and Finance Ministry to take action against banks that are failing to provide timely loans to farmers, small and medium enterprises (SMEs) and applicants under the Apna Ghar housing program.
Chairing a meeting in Islamabad on improving access to financing for priority sectors, the prime minister said expanding credit facilities for agriculture, SMEs and housing was essential for economic growth and job creation, particularly for young people.
He appreciated banks that had performed well under government-backed lending programs but stressed that all financial institutions must play a more active role in supporting these sectors.
PM Seeks Easier Loans for Farmers, SMEs and Homebuyers
Shehbaz said SMEs could contribute significantly to economic growth, increase exports and generate employment.
He described agriculture as a major pillar of Pakistan’s economy and stressed the need to increase exports by promoting value addition in agricultural products.
The prime minister also highlighted the Apna Ghar program’s potential to support the construction sector and create economic activity across industries linked to housing.
He directed the finance minister to address financing obstacles faced by businesses, farmers and housing scheme applicants and prepare a comprehensive action plan.
The SBP and Federal Board of Revenue (FBR) were also instructed to coordinate on tax-related issues affecting SMEs and exporters.
The prime minister further called for a comprehensive risk coverage mechanism to encourage banks to extend more financing to small businesses.
SBP Expands Digital Lending Facilities
The meeting was informed that the central bank was working on three key areas to increase lending to priority sectors: regulatory improvements, risk and cost-sharing arrangements between the government and banks, and greater use of digital platforms.
Under these efforts, the SBP recently introduced its SME Connect portal, allowing businesses to submit loan applications digitally and monitor their progress.
The meeting also reviewed progress under the Apna Ghar housing program.
As of October 23, 2026, banks had approved loans worth Rs. 511 billion against 86,899 applications. Disbursements had reached Rs. 91 billion, benefiting 15,584 applicants.
Agriculture and SME Lending Cross Rs. 1 Trillion Each
The meeting was informed that total housing finance had reached Rs. 455 billion, benefiting 187,317 borrowers.
Agricultural financing stood at Rs. 1,329 billion, covering approximately 3.5 million beneficiaries.
Meanwhile, SME financing reached Rs. 1,148 billion, with 342,458 businesses receiving credit facilities.
The government has set a target of increasing lending to both agriculture and SME sectors to Rs. 1,500 billion by the end of fiscal year 2027.
Officials also briefed participants on credit guarantee and risk-sharing programs designed to expand financing for housing, agriculture and small businesses.
Banks are being encouraged to simplify loan procedures, reduce documentation requirements and use digital systems to make financing more accessible.
The meeting also reviewed commercial banks’ performance across the three priority sectors, with Shehbaz praising institutions that had made significant progress in expanding lending.
Several federal ministers, the SBP governor, senior government officials and representatives of leading commercial banks attended the meeting.
