The government has shifted greater attention toward implementation and measurable outcomes in its access to finance agenda after a review showed continued growth in financing for small and medium enterprises, agriculture and housing during the first nine months of 2026. Outstanding SME financing increased to more than Rs1.137 trillion by the end of September, while agriculture financing crossed Rs1.35 trillion and housing finance reached Rs426 billion. The figures were reviewed during the fifth meeting of the Access to Finance Steering Committee, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division.
The finance minister directed the committee to place greater emphasis on implementation, results and follow-up rather than focusing only on policy decisions. He called for systematic tracking of progress on recommendations and decisions made by the committee’s sub-committees, with clear responsibilities and timelines for the work ahead. The review showed that SME financing increased from Rs1.114 trillion in June 2026 to more than Rs1.137 trillion by the end of September, an increase of around Rs23 billion. The number of SME borrowers also rose by more than 25,000 to about 350,862.
Agriculture financing recorded a larger increase during the same period, rising from Rs1.26 trillion in June to more than Rs1.35 trillion by the end of September, representing an increase of Rs94.7 billion. The number of agriculture finance borrowers reached approximately 3.46 million, up by 196,303. Housing finance also expanded from Rs323 billion in June to Rs426 billion by the end of September, marking an increase of Rs103 billion, while the number of housing finance borrowers stood at 231,550. The government is seeking to translate these increases into broader access for underserved borrowers through stronger implementation across financial institutions and related sectors.
On SME financing, Aurangzeb urged faster progress toward the government’s medium-term objective of increasing SME financing to Rs2 trillion and expanding the number of borrowers to 775,000 by June 2028. He said achieving the targets would require coordinated action across commercial banks, microfinance institutions and other financial service providers. The minister also called for a focused mechanism to place microfinance institutions and other relevant entities on a more level footing, supported by appropriate government assistance and financing arrangements that can expand their reach among small and medium-sized businesses.
The committee also discussed the bankability and capacity of SMEs, with the finance minister directing the Small and Medium Enterprises Development Authority, the State Bank of Pakistan and participating financial institutions to align their work through a consolidated action tracker. The proposed mechanism is expected to identify specific workstreams, responsible parties, timelines and dependencies. Aurangzeb stressed that capacity building, financial literacy, documentation assistance and digital tools should ultimately help SMEs become better prepared to access formal financing rather than remain separate initiatives without measurable lending outcomes.
Agriculture financing was another major area reviewed by the committee. Participants noted that 5,563 uncollateralised loans worth Rs2.1 billion had been disbursed to smallholder farmers under the Prime Minister’s Zarkhez-e-Asaan Zarai Qarza scheme. The meeting also examined ways to increase financing throughout the agricultural value chain, with particular attention to livestock, fisheries and other segments that remain underserved. Aurangzeb highlighted the financing potential of the livestock sector and called for greater private-sector participation supported by appropriate risk-mitigation mechanisms.
The committee considered a proposed framework that could restructure and repurpose existing institutional arrangements to improve agricultural financing. The finance minister directed the relevant authorities to work with the State Bank of Pakistan and other stakeholders to develop an operational and financing framework and return with specific proposals. The focus is intended to move beyond the availability of credit toward developing financing structures that can support different segments of the agricultural economy and expand access among farmers and related businesses.
Housing finance also featured prominently in the review. Under the Wazir-e-Azam Apna Ghar Program, Rs76 billion has been disbursed to 13,214 borrowers, while approved loans worth Rs350 billion are still awaiting disbursement. The committee discussed the need to support both demand and supply in the housing market, including financing for homebuyers as well as developers and builders. Aurangzeb called for an effective builder-financing framework and coordination between relevant authorities and financial institutions to develop practical products capable of addressing supply-side constraints and supporting affordable housing.
The meeting further considered the role of data in expanding responsible lending and improving risk assessment. The finance minister stressed that data should be used with appropriate safeguards and clearly defined purposes, while financial institutions should retain access to information required to assess borrowers and increase cash-flow-based lending. The discussion reflects the government’s broader effort to strengthen information-sharing within the financial system while maintaining appropriate limits around the use of borrower data.
The Pakistan Accelerated Vehicle Electrification Scheme was also reviewed as part of the government’s financing agenda. The scheme aims to support the transition of two- and three-wheeler mobility to electric vehicles through affordable financing. By the end of September, 17,262 applications worth Rs2.54 billion had been approved, while 4,839 loans worth Rs975 million had been disbursed and 2,725 electric vehicles had been delivered. Aurangzeb directed officials to focus on converting approved financing into actual deliveries and resolving implementation bottlenecks so that approved beneficiaries receive the intended support.
The finance minister further stressed that government-backed financing programmes should remain commercially sound and properly targeted. Public support, he said, should focus on genuine market gaps and create opportunities for sustainable private-sector participation instead of encouraging prolonged dependence on subsidies. He directed ministries, regulators, financial institutions and industry participants to coordinate on the identified priorities and complete agreed actions within defined timelines.
The broader objective of the access to finance agenda, according to the meeting, is not simply to increase the volume of available funding but to build a wider financial ecosystem capable of reaching SMEs, farmers, households and other underserved segments. Aurangzeb called for an all-hands-on-deck approach involving commercial banks, microfinance institutions, non-bank financial institutions, regulators, development partners and private-sector participants. The meeting was attended by senior officials and representatives from the Ministry of National Food Security and Research, Securities and Exchange Commission of Pakistan, Pakistan Banks’ Association, Karandaaz Pakistan, Small and Medium Enterprises Development Authority, Finance Division, State Bank of Pakistan and other relevant public offices.
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