SMEs, farmers, housing: PM directs banks, FIs to boost lending

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed banks and financial institutions (FIs) to expand lending to farmers, small and medium enterprises (SMEs) and the housing sector, and said the government would encourage institutions that actively supported these areas. Presiding over a review meeting on the Access to Finance Plan 2026-28, the prime minister was informed that bank lending to agriculture had reached Rs1. 268 trillion in August, against a target of Rs2 trillion by June 2028. Lending to SMEs stood at Rs1. 067 trillion, with the plan targeting Rs2 trillion by the same deadline. Sharif said agriculture was the backbone of the country’s economy and its development was a national responsibility. He directed that farmers should be provided uninterrupted access to financing on easy terms. The prime minister also stressed the need for affordable housing, particularly for low and middle-income groups, and reviewed progress on the Prime Minister’s Apna Ghar Scheme. Officials told the meeting that 147, 504 applications had been received under the scheme so far, of which 53, 127 had been approved. The approved applications were valued at Rs313. 42 billion, while Rs45. 43 billion had been disbursed to 8, 739 applicants. Sharif directed the provincial chief secretaries to conduct a comprehensive survey of properties that banks could finance for people seeking to own homes under the scheme. Officials said a system was being developed to identify plots across the country that met mortgage requirements. The pilot project would be launched in Islamabad. A mechanism was also being developed to involve housing developers in the scheme, the meeting was informed. The prime minister’s directions on agricultural financing came as officials briefed him on efforts to expand access to credit through digital channels. The Zarkhez-e app had received 35, 838 applications, with Rs7. 35 billion in financing approved and Rs1. 96 billion disbursed. The meeting was also informed that the Small and Medium Enterprises Development Authority (SMEDA) had provided financial literacy training to 1, 096 SMEs over the past three months. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Minister for National Food Security Rana Tanveer Hussain, Finance Minister Muhammad Aurangzeb, Economic Affairs minister Ahad Cheema, Minister for Housing and Works Riaz Pirzada, State Minister for Finance Bilal Kayani, Adviser to the Prime Minister on Industries and Production Haroon Akhtar, State Bank of Pakistan Governor Jameel Ahmad, chief secretaries of the four provinces, Azad Jammu and Kashmir and Gilgit-Baltistan, and presidents and CEOs of local banks. World Bank Country Director for Pakistan Bolormaa Amgaabazar also attended the meeting. Copyright Business Recorder, 2026

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