Govt pushes implementation focus as SME, agri and housing finance rise

October 08, 2026 (MLN): The government has stressed implementation and measurable outcomes in its access to finance drive after a review showed outstanding SME finance rising to over Rs1.137tr, agriculture finance to over Rs1.35tr and housing finance to Rs426bn by end-September 2026.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the fifth meeting of the Access to Finance Steering Committee at the Finance Division.

He wants the committee to concentrate increasingly on implementation, results and follow-up, with progress on sub-committee decisions and recommendations tracked systematically.

SME financing

The Finance Minister urged faster progress to stay on course for the government's medium-term goal of lifting SME financing to Rs2tr and the number of borrowers to 775,000 by June 2028.

He stressed that this would take an ecosystem-wide effort involving commercial banks, microfinance institutions and other financial service providers, according to a press release issued.

He directed that a focused mechanism be developed to put microfinance institutions and other relevant entities on a more level footing, along with suitable government support and financing arrangements to widen their SME outreach.

On SME bankability and capacity building, he directed that the work of SMEDA, the State Bank of Pakistan and participating financial institutions be closely aligned and consolidated into a single action tracker covering workstreams, owners, timelines and interdependencies.

He wants capacity-building, financial literacy, documentation support and digital tools to translate into SMEs being better prepared to obtain formal financing.

Agriculture finance

The committee noted that 5,563 uncollateralised loans worth Rs2.1bn have been disbursed to smallholder farmers under the Prime Minister's Zarkhez-e-Asaan Zarai Qarza scheme.

Participants discussed stronger financing across the agricultural value chain, particularly for livestock, fisheries and other underserved segments.

Senator Aurangzeb pointed to the large potential of the livestock sector and called for ways to boost its financing through greater private-sector participation and suitable risk-mitigation tools.

The committee considered a proposed framework that includes possible restructuring and repurposing of existing institutional arrangements. He directed the relevant authorities to work with the State Bank and other stakeholders on an operational and financing framework and return with concrete proposals.

Housing finance

Under the Wazir-e-Azam Apna Ghar Program, Rs76bn has been disbursed to 13,214 borrowers, while approved loans worth Rs350bn await disbursement.

The committee discussed supporting not only homebuyers but also the supply side, including developers and builders.

Senator Aurangzeb stressed the need for an effective builder-financing framework and called on the relevant authorities and financial institutions to coordinate on practical products that address supply-side constraints and support affordable housing.

The committee also discussed improving data availability and information-sharing to enable responsible lending and better risk assessment.

The finance minister stressed that data should be used with proper safeguards and clear limits on purpose, while financial institutions retain access to the information needed to assess borrowers and expand cash-flow-based lending.

On the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme, which aims to move two- and three-wheeler mobility to electric through affordable financing, 17,262 applications worth Rs2.54bn have been approved.

By end-September, 4,839 loans worth Rs975mn had been disbursed and 2,725 electric vehicles delivered. Aurangzeb directed greater attention to converting approved financing into actual deliveries and clearing implementation bottlenecks so benefits reach the intended beneficiaries.

The finance minister further stressed that government-backed financing schemes should remain commercially sound and well targeted.

Public support, he said, should address genuine market gaps and open routes for sustainable private-sector participation rather than create prolonged dependence on subsidies.

He directed ministries, regulators, financial institutions and industry participants to work together on the identified priorities and complete agreed actions within set timelines.

The aim of the agenda, he stressed, is not just to raise funding availability but to build a broader and deeper ecosystem able to reach SMEs, farmers, households and other underserved segments.

He added that an all-hands-on-deck approach was needed, with commercial banks, microfinance institutions, non-bank financial institutions, regulators, development partners and the private sector working together.

The meeting was attended by the Federal Secretary, Ministry of National Food Security and Research; Chairman, Securities and Exchange Commission of Pakistan (SECP); Chairman, Pakistan Banks’ Association (PBA); Chief Executive Officer, Karandaaz Pakistan; Chief Executive Officer, Small and Medium Enterprises Development Authority; along with senior representatives of the Finance Division, the State Bank of Pakistan, SECP and relevant public offices.

Copyright Mettis Link News