Finance Minister reviews progress on SME, agriculture and housing financing

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday chaired the fourth meeting of the Access to Finance Steering Committee, reviewing progress on initiatives aimed at expanding affordable and inclusive financing across key sectors. The meeting reviewed developments in financing for small and medium enterprises (SMEs), agriculture, housing, information technology, exports and renewable energy, the Finance Division said. By the end of August 2026, SME financing had reached Rs1. 067 trillion, serving 323, 987 borrowers and accounting for 9. 90% of domestic private advances. The government aims to expand SME financing to Rs2 trillion and increase the number of borrowers to 775, 000 by June 2028, raising its share of domestic private advances to 13%. Aurangzeb stressed the need to maintain momentum towards the targets and called for a clear bank-wise plan to strengthen SME credit growth. He also welcomed progress on the wholesale SME financing framework, aimed at broadening outreach and increasing the number of businesses with access to formal financing. The committee was also briefed on agriculture financing, which stood at Rs1. 268 trillion by the end of August 2026, covering more than 3. 39 million borrowers and accounting for 10. 90% of domestic private advances. The medium-term target is to increase agriculture financing to Rs2 trillion and expand the borrower base to 5. 5 million by June 2028. Under the Zarkhez-e-Asaan Zarai Qarza programme, aimed at providing uncollateralised financing to smallholder and tenant farmers, 58, 919 farmers had registered and 35, 838 applications had been received. A total of 16, 964 loans worth Rs7. 349 billion had been approved, while 5, 174 loans amounting to Rs1. 956 billion had been disbursed. On housing finance, the committee reviewed progress under the Wazir-e-Azam Apna Ghar Programme – Ghar Ho To Apna. As of September 4, approved housing finance under the programme had reached Rs351. 3 billion, up Rs38. 3 billion, or 12%, from the end of August. The programme had received 156, 813 applications, with 60, 349 loans worth Rs351. 3 billion approved. Of these, 9, 717 loans amounting to Rs51. 13 billion had been disbursed. The finance minister stressed the need to accelerate the conversion of approved cases into actual disbursements and make affordable mortgage financing simpler and more accessible. The committee also reviewed the Pakistan Accelerated Vehicle Electrification (PAVE) Programme. With 17 participating banks, the programme had recorded 17, 118 approved applications involving Rs2. 581 billion. A total of 4, 228 loans worth Rs804 million had been disbursed, while 1, 860 electric bikes had been delivered so far. Aurangzeb said the focus should now be on accelerating the delivery of electric bikes to beneficiaries whose financing had already been approved and disbursed. The meeting was also briefed on initiatives by the Small and Medium Enterprises Development Authority (SMEDA), including financial literacy programmes, SME financing help desks and over-the-counter documents and tools. SMEDA plans to conduct 560 financial literacy training programmes across Pakistan, with around 100 already completed. Aurangzeb said expanding access to finance required coordinated action across the financial ecosystem, along with measures to improve the capacity and bankability of SMEs and other underserved segments. He said greater access to finance was critical to the government’s broader objective of moving towards private-sector-led and sustainable economic growth. The finance minister directed relevant sub-committees to continue advancing their workstreams and bring key recommendations and implementation issues to the Steering Committee for timely consideration under the Prime Minister’s Access to Finance Plan. The meeting was attended by the federal secretaries of finance and housing and works, the governor of the State Bank of Pakistan, chairman of the Securities and Exchange Commission of Pakistan, and senior officials from relevant institutions.

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