Islamabad, April 19, 2025 – The Senate Functional Committee on Problems of Less Developed Areas has formally requested a detailed briefing from the State Bank of Pakistan (SBP) regarding the disbursement of loans through various financial schemes. These include credit guarantee programs aimed at boosting agricultural and rural financing, with a special focus on support for marginalized farmers and the livestock and dairy sectors across Pakistan’s less developed regions.
Originally set to meet on Friday under the chairmanship of Senator Agha Shahzaib Durrani, the committee’s session has now been rescheduled and will likely take place later this month. Despite the postponement, the agenda remains centered around understanding how national financial institutions are facilitating credit access for economically underserved communities and sectors.
The SBP governor is expected to provide an in-depth overview of the central bank’s credit disbursement strategy. This includes the implementation and performance of schemes specifically tailored to enhance rural and agricultural productivity, as well as financial inclusion initiatives aimed at smallholder farmers and micro-entrepreneurs who traditionally face barriers in accessing formal credit.
In parallel, the committee is also seeking a compliance report from the president of the National Bank of Pakistan (NBP) regarding the recommendations issued during a previous committee session held on October 30, 2024. These recommendations covered measures to enhance financial accessibility in backward areas and called for greater institutional accountability in ensuring equitable loan distribution.
The NBP president has also been asked to present a comprehensive briefing on the bank’s loan disbursement over the past five years. This includes specific data on financial support extended to small and medium enterprises (SMEs), the agriculture sector, and corporate clients operating in less developed regions of the country. The committee aims to understand how much of the national lending volume is directed toward these areas and whether the policies in place are inclusive and development-focused.
Additionally, the committee will review the promotion and incentive structures within NBP, especially related to staff members originating from underprivileged and remote areas. A detailed breakdown of officers from these regions who have been promoted over the last five years has been requested, to evaluate whether institutional growth opportunities are being distributed fairly across different demographic and geographic segments.
These briefings are expected to provide key insights into how state-run financial institutions are aligning their operations with the broader goals of inclusive growth and regional development. The focus on credit access, especially through guaranteed and subsidized schemes, highlights the government’s intent to tackle long-standing economic disparities between urban centers and rural districts.
As the date of the rescheduled meeting approaches, the outcomes are likely to shape future policy conversations and may result in further parliamentary action or regulatory guidance. Financial sector stakeholders, particularly those working in agriculture, rural finance, and development banking, will be watching closely to see how the central bank and commercial lenders respond to growing calls for accountability and impact-driven lending in Pakistan’s most underserved communities.