Pakistan’s Finance Minister Muhammad Aurangzeb has commended the State Bank of Pakistan (SBP) and the country’s banking industry for delivering exceptional growth in priority sector lending, particularly to small and medium enterprises (SMEs) and the agriculture sector. His remarks came during a meeting hosted by the SBP in Karachi, which brought together top executives from leading commercial banks, policy officials, and financial regulators.
The meeting was chaired by SBP Governor Jameel Ahmad, with participation from Chairman of the Pakistan Banks Association (PBA) Zafar Masood, senior officials of the Ministry of Finance and the SBP. Khurram Schehzad, Advisor to the Finance Minister, shared highlights of the gathering through a detailed post on X (formerly Twitter).
During the session, Finance Minister Aurangzeb acknowledged the crucial efforts made by the SBP and banks that resulted in an impressive 41 percent growth in SME financing and a solid 15 percent increase in agriculture lending during the fiscal year FY25. He stressed that these advances reflect a combined commitment toward supporting the backbone of Pakistan’s economy.
Aurangzeb pointed out that Pakistan’s macroeconomic stability had been restored through challenging policy decisions and collective contributions from all economic players, including the central bank and commercial banks. He underscored that sustainable and inclusive growth remains at the center of the government’s economic strategy, with SMEs and agriculture holding pivotal roles in job creation and rural development.
He urged banks to maintain the same level of dedication by expanding their reach into underserved and marginalized areas, with a focus on leveraging digital channels to drive accessibility and efficiency in financial services.
Welcoming the finance minister, SBP Governor Jameel Ahmad expressed appreciation for the ministry’s proactive measures, such as launching risk coverage schemes that mitigate lending risks for banks in SME and agriculture finance. He also called on banks to scale up their involvement in priority sectors, making full use of the incentive structures provided by the government.
Deputy Governor SBP Saleemullah delivered a comprehensive presentation detailing the strides made in FY25. He shared that agriculture credit disbursements reached Rs2,535 billion, marking a 14 percent increase from FY24. The outstanding agri credit portfolio expanded by 12 percent to Rs981 billion, with the borrower base growing 9 percent to nearly 3 million.
In SME financing, the outstanding portfolio surged to Rs692 billion, accompanied by a remarkable 55 percent rise in the number of borrowers to about 273,000 by the end of FY25. This represents the fastest growth seen in recent years, underscoring the sector’s rising appetite for formal credit.
Zafar Masood, Chairman PBA, thanked the SBP and Ministry of Finance for their continuous backing of the banking sector’s efforts in priority lending and digitization initiatives. On behalf of the banking community, he pledged that banks would accelerate their financing to these vital sectors in FY26.
Concluding the meeting, Finance Minister Aurangzeb again applauded the banking industry’s performance and expressed confidence that this momentum would only strengthen in FY26 and beyond. He assured the banks of a stable and supportive policy environment to help them further expand their portfolios in priority segments critical for Pakistan’s long-term economic resilience.