Govt eyes Rs2tr SME, agri finance by 2028

September 10, 2026 (MLN): The government has reported significant progress on expanding affordable and inclusive finance across priority sectors, with SME financing reaching Rs1.067tr and agriculture finance touching Rs1.268tr by the end of August 2026, as the Finance Ministry pushes ahead with its Access to Finance Plan.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the fourth meeting of the Access to Finance Steering Committee at the Finance Division, reviewing initiatives spanning SMEs, agriculture, information technology, exports, renewable energy and housing, according to a press release issued.

The meeting was attended by Federal Secretary Finance; Federal Secretary Housing and Works; Governor, State Bank of Pakistan (SBP); Chairman, Securities and Exchange Commission of Pakistan (SECP); Chief Executive Officer, Karandaaz Pakistan; CEO, Small and Medium Enterprises Development Authority; along with senior representatives of the Finance Division, the SBP and the SECP.

The Minister emphasized keeping the Steering Committee's deliberations focused, outcome-oriented and increasingly centered on implementation, directing that significant proposals first be considered through relevant sub-committees before being brought for consolidated review.

SME Financing

SME finance stood at Rs1.067tr by end-August 2026, serving 323,987 borrowers and accounting for 9.90% of domestic private advances.

The medium-term target is to expand SME financing to Rs2tr and the borrower base to 775,000 by June 2028, raising its share to 13%.

The Minister called for a clear bank-wise plan to strengthen SME credit growth and welcomed progress on the wholesale SME financing framework aimed at broadening outreach.

Agriculture Finance

Agriculture finance reached Rs1.268tr by end-August 2026, covering 3,392,092 borrowers and representing 10.90% of domestic private advances, with a medium-term target of Rs2tr and 5.5 million borrowers by June 2028.

Under the Zarkhez-e-Asaan Zarai Qarza programme, designed to provide uncollateralised financing to smallholder and tenant farmers, 58,919 farmers had registered with 35,838 applications received.

Of these, 16,964 loans worth Rs7.349bn had been approved, while 5,174 loans amounting to Rs1.956bn had been disbursed.

Housing Finance

Under the Wazir-e-Azam Apna Ghar Programme – Ghar Ho To Apna, which offers tenors of up to 20 years with a fixed 5% rate for the first 10 years, approved housing finance reached Rs351.3bn by September 4, 2026, up Rs38.3bn since end-August, a 12% increase in less than a week.

Of 156,813 applications received, 60,349 loans worth Rs351.3bn had been approved, while 9,717 loans amounting to Rs51.13bn had been disbursed.

Electric Vehicle Financing

Under the Pakistan Accelerated Vehicle Electrification (PAVE) Programme, involving 17 participating banks, 17,118 applications worth Rs2.581bn had been approved, while 4,228 loans amounting to Rs804mn had been disbursed.

A total of 1,860 electric bikes had been delivered so far.

The CEO of SMEDA briefed the Committee on the Financial Literacy Programme, SME Financing Help Desks, and Over-the-Counter Documents and Tools, noting that around 100 of 560 planned financial literacy training programmes had been conducted, and that five SME Financing Help Desks had been held with partner banks during the last month.

The Minister said greater access to finance was an important enabler of the government's broader objective of moving toward private-sector-led and sustainable economic growth, and stressed that the focus should increasingly be on translating financing frameworks and approvals into actual credit, investment and economic activity.

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