FM sets up SME finance task force to expand credit access

July 07, 2026 (MLN): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced the establishment of a dedicated SME Finance Task Force to improve access to financing for small and medium enterprises (SMEs) and increase private-sector lending.

Addressing the Pakistan Banking Summit 2026 in Karachi, the finance minister said the task force will be led by the State Bank of Pakistan (SBP) and include representatives from the Pakistan Banks’ Association (PBA), Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce and industry, and the Ministry of Finance.

The task force will propose practical measures to strengthen SME financing and expand credit availability across the banking sector.

Senator Aurangzeb stressed that increasing lending to SMEs, exporters, agriculture, manufacturing, construction, housing, and the information technology sector is critical for achieving sustainable economic growth.

He said access to finance for SMEs must become an industry-wide priority rather than the responsibility of a limited number of institutions.

He highlighted that necessary budgetary allocations for these sectors have already been made in the Federal Budget FY27.

The finance minister also noted improvements in Pakistan’s macroeconomic indicators, including a primary surplus, lower fiscal deficit, improved debt indicators, stronger current account performance, record remittance inflows, rising foreign exchange reserves, and renewed access to international capital markets.

He reaffirmed the government’s commitment to structural reforms, policy continuity, and export-led growth, adding that the Federal Budget FY27 introduced measures to improve competitiveness, encourage investment, and support exporters, agriculture, and manufacturing.

Senator Aurangzeb further said the government is working to modernize tax administration through technology-driven systems, expand risk-sharing and partial credit guarantee schemes for SMEs and small farmers, and deepen domestic debt capital markets to reduce dependence on bank financing.

The minister also highlighted ongoing financial sector reforms, including privatization, climate finance, digital assets, and financial innovation, while stressing the importance of strengthening cyber resilience to support Pakistan’s evolving digital financial ecosystem.

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