FinMin praises SBP, banks for priority sector growth

July 15, 2025 (MLN): The State Bank of Pakistan (SBP) hosted a meeting of banks’ CEOs/Presidents where the Finance Minister Mr. Muhammad Aurangzeb appreciated the SBP and banks for achieving stellar growth of 41% in SME finance and appreciable growth of 15% in Agri financing during FY25, as Khurram Schehzad, Advisor to the Finance Minister, wrote in a post on X.

The meeting was co-chaired by the Governor SBP, Mr. Jameel Ahmad, and also attended by the Chairman Pakistan Banks Association, Mr. Zafar Masood, senior officials of Ministry of Finance and SBP.

The finance minister emphasized that macroeconomic stability has been achieved through difficult and unpopular decisions and the collaborative efforts of all stakeholders, including SBP and banks.

He added that the Government is pursuing sustainable and inclusive economic growth, for which the role of SMEs andthe  agriculture sectors is pivotal.

He emphasized that the banks should work with the same spirit to enhance priority sector financing with a particular focus on increasing outreach to the small and marginalized segments and underserved areas in digital settings.

Governor Jameel Ahmad in his welcome address expressed gratitude to the finance minister for taking various initiatives for promotion of priority sector financing including introduction of risk coverage schemes for SMEs and Agri finance.

While expressing satisfaction over the growth in SME and Agri finance during FY25, he emphasized banks to aggressively expand their exposures in the priority sector given the incentive structure put in place by government.

Deputy Governor SBP Mr. Saleemullah made a detailed presentation on the progress made by banks in agriculture and SME financing and digitization.

During FY25, agriculture credit disbursement reached to Rs2,535bn which is 14% higher than FY24.

Moreover, the outstanding credit portfolio increased by 12% to Rs981bn with number of borrowers increasing by 9% to 2.95 million at the end of FY25.

Likewise, outstanding SME financing has reached to Rs692 billion with around 272,600 borrowers at the end of FY25, witnessing unprecedented growth of 41% in financing and 55% in number of borrowers.

The Chairman PBA appreciated the SBP and Ministry of Finance for the continuous support to the banking industry in promoting agriculture and SME financing and the development of digitization ecosystem.

On behalf of the banking industry, the Chairman PBA pledged to expand priority sector financing at an accelerated pace during FY26 as well.

The finance minister, in the end, thanked the banks again for an impressive performance in the priority sector during FY25 and expressed optimism that the growth would further improve in FY26 and beyond.

He assured banks of a supportive and enabling environment to help them develop their priority sector portfolios.

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