PM Shehbaz advocates for greater lending to SMEs

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called on banks to substantially expand lending to priority sectors, with a particular focus on small and medium enterprises (SMEs), as the government stepped up efforts to broaden access to finance aimed at boosting exports, generating employment and fostering sustainable economic growth. Chairing a high-level meeting on the implementation of the Access to Finance Plan, the prime minister stressed that ensuring the availability of affordable and accessible financial facilities was crucial for strengthening the national economy and accelerating its transformation into an export-driven model. A detailed briefing on the plan revealed that the government has set ambitious targets to enhance the role of SMEs in the country’s financial landscape. READ MORE: Small and Medium-sized Enterprises: PM for developing specialised lending products Under the initiative, the SME sector’s share in private-sector lending is expected to increase from the current 7 per cent to 10 per cent over the next two years. Officials said the number of SME loan beneficiaries would also be expanded from around 310, 000 to 750, 000 during the same period, significantly widening the reach of formal financing facilities for small businesses. Addressing the meeting, the prime minister said improved access to credit would serve as a catalyst for economic activity by strengthening businesses, increasing export capacity, creating new job opportunities and supporting long-term growth. He added that banks demonstrating stronger performance in extending financial support to key sectors would be encouraged and facilitated. He said that he would personally chair monthly review meetings to oversee progress on the Access to Finance Plan, ensuring effective implementation and timely achievement of targets aimed at improving financing opportunities for businesses and strategic economic sectors. Officials briefed the meeting that the plan was designed to help the country move from economic stabilization towards sustainable and inclusive growth by expanding financial services and integrating access to finance into the mainstream economic framework. The initiative places particular emphasis on increasing credit availability for SMEs, agriculture, exports, renewable energy, housing and the information technology sector. Officials said the expanded financing framework would contribute to higher exports, stronger economic activity and increased employment opportunities. A coordinated, system-wide implementation mechanism involving the Ministry of Finance, the State Bank of Pakistan (SBP), provincial governments and other relevant stakeholders will be established to ensure effective execution of the plan. Under the proposed governance structure, the finance minister will oversee the framework, while the SBP governor will serve as co-chair. Regular meetings will be convened, with monthly progress reports to be submitted to the prime minister. Officials said the two-year roadmap had established ambitious financing targets across multiple sectors, including a substantial rise in SME lending and a sharp increase in the number of businesses benefiting from bank financing. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Minister for National Food Security Rana Tanveer, Law Minister Azam Nazeer Tarar, Economic Affairs Minister Ahad Cheema, Minister of State for Finance Bilal Azhar Kayani, Special Assistant to the Prime Minister on Industries Haroon Akhtar, SBP Governor Jamil Ahmed, presidents and chief executive officers of local banks, provincial chief secretaries, and senior government officials. Copyright Business Recorder, 2026

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