Key Takeaways
- The government aims to double financing for SMEs and agriculture to Rs2 trillion each by June 2028.
- Housing finance under the Prime Minister’s affordable housing programme has surged to Rs351.3 billion.
- The focus is on shifting from approvals to actual disbursements to boost economic activity.
The government has set ambitious targets to double financing for small and medium enterprises (SMEs) and agriculture to Rs2 trillion each by June 2028, Finance Minister Senator Muhammad Aurangzeb announced during the fourth meeting of the Access to Finance Steering Committee.
The minister directed banks and relevant institutions to focus on actual disbursements rather than just approvals, emphasizing that financing frameworks must translate into credit, investment, and economic activity on the ground.
The meeting reviewed progress on initiatives aimed at expanding affordable and inclusive finance across priority sectors, including SMEs, agriculture, information technology (IT), exports, renewable energy, and housing.
By the end of August 2026, SME financing stood at Rs1.067 trillion, serving 323,987 borrowers and accounting for 9.90 percent of domestic private advances. The medium-term aspiration is to expand SME financing to Rs2 trillion and the number of borrowers to 775,000 by June 2028, raising its share to 13 percent.
Aurangzeb highlighted the importance of maintaining momentum towards these targets and called for a clear bank-wise plan to strengthen SME credit growth over the coming months.
The Committee was informed that agriculture finance reached Rs1.268 trillion by the end of August 2026, covering 3,392,092 borrowers and representing 10.90 percent of domestic private advances. The medium-term target is to increase agriculture finance to Rs2 trillion and expand the borrower base to 5.5 million by June 2028.
On housing finance, the Wazir-e-Azam Apna Ghar Programme – Ghar Ho To Apna has seen significant progress. By September 4, 2026, approved housing finance under the programme had reached Rs351.3 billion, increasing by Rs38.3 billion since end-August – a 12 percent increase in less than one week. A total of 156,813 applications had been received, of which 60,349 loans valued at Rs351.3 billion had been approved, while 9,717 loans amounting to Rs51.13 billion had already been disbursed.
The meeting also reviewed progress under the Pakistan Accelerated Vehicle Electrification (PAVE) Programme, which had recorded 17,118 approved applications involving Rs2.581 billion, with 4,228 loans amounting to Rs804 million having been disbursed. A total of 1,860 electric bikes had been delivered.
Aurangzeb stressed the need to accelerate the delivery of electric bikes to beneficiaries whose financing has already been approved and disbursed, ensuring that financial approvals translate more quickly into tangible outcomes on the ground.
