Prime Minister Shehbaz Sharif has directed the State Bank of Pakistan (SBP) and the Finance Ministry to accelerate lending to small businesses, farmers and home buyers. The PM Shehbaz loan directives aim to improve access to financing and address delays in government-backed loan programmes. He also warned that banks failing to meet lending commitments should not receive concessions from relevant authorities.
Chairing a meeting in Islamabad on Monday, the prime minister reviewed financing facilities for agriculture, housing and small and medium-sized enterprises (SMEs). He praised banks supporting these sectors and stressed that financial institutions must contribute to economic development. He said the private sector played an important role in growth and deserved greater support from the banking industry.
Shehbaz Sharif identified agriculture, housing and SMEs as major government priorities. He said their development could strengthen the national economy, increase exports and create employment opportunities, particularly for young people. He directed the finance minister to prepare a comprehensive strategy to address financing challenges faced by businesses, farmers and housing applicants.
The prime minister also instructed the SBP and Federal Board of Revenue to resolve tax-related difficulties affecting SMEs and exporters. He called for a risk-coverage strategy to encourage banks to finance smaller businesses. Meanwhile, the SBP is working on regulatory improvements, risk-sharing arrangements and digital financial services to expand lending across priority sectors.
According to the meeting’s briefing, the Apna Ghar scheme had approved loans worth Rs511 billion by October 23. The approvals covered 86,899 applications, while 15,584 applicants had received Rs91 billion in financing. Overall housing finance reached Rs455 billion, benefiting 187,317 borrowers. The newly introduced SME Connect portal also allows businesses to apply for loans and monitor their applications digitally.
Agricultural lending stood at Rs1,329 billion, supporting approximately 3.5 million beneficiaries. Meanwhile, SME financing reached Rs1,148 billion, covering 342,458 businesses. The government aims to increase lending in both sectors to Rs1,500 billion each by the end of fiscal year 2027. Officials also highlighted measures to simplify applications, reduce paperwork and introduce credit guarantees.
The prime minister described agriculture as the backbone of Pakistan’s economy and called for greater exports through value addition in agricultural products. He added that the Apna Ghar scheme could support industries connected to construction and housing. Federal ministers, the SBP governor, senior officials and representatives of leading commercial banks attended the meeting to discuss the lending targets and proposed measures.
