Prime Minister Shahbaz Sharif has directed the State Bank of Pakistan (SBP) and the Ministry of Finance to take action against banks that are slow in providing loans to farmers, small and medium enterprises (SMEs), and applicants under the Prime Minister’s Apna Ghar Scheme. The directive came during a review meeting in Islamabad on November 2, where the government examined progress in financing priority sectors and discussed measures to improve access to credit for businesses, agriculture and housing.
According to a statement issued by the Prime Minister’s Office (PMO), the prime minister said that no leniency should be shown towards banks that are not moving at the required pace in extending loans under government initiatives. He acknowledged the performance of banks that had facilitated financing for agriculture, housing and SMEs, while asking the relevant authorities to address delays by other institutions. The directive places responsibility on the SBP and the Ministry of Finance to monitor banks’ performance and support the government’s efforts to increase lending to sectors considered important for economic activity and employment.
During the meeting, Prime Minister Shahbaz Sharif said that strengthening SMEs, expanding housing and construction activity, and supporting agriculture were among the government’s priorities. He also highlighted the role of these sectors in creating employment opportunities for young people. According to the prime minister, banks are important to the development of the private sector and are expected to cooperate in providing financing to priority sectors, just as the government and its institutions extend support to the banking industry.
The prime minister particularly emphasised the economic contribution of small and medium enterprises, saying that the sector has the potential to support economic growth, increase exports and generate employment. Access to financing remains an important requirement for businesses seeking to expand operations, invest in equipment, improve production capacity and enter new markets. The government wants financial institutions to make credit more accessible so that smaller businesses can participate more effectively in economic activity.
Agriculture was also highlighted as a key sector because of its importance to Pakistan’s national economy. Prime Minister Shahbaz Sharif said that the government was working to increase exports through value addition in agricultural commodities. Financing for farmers and agricultural businesses can support investment in production, processing and related activities. The government’s focus on agricultural lending is therefore linked not only to farm-level financing but also to efforts to improve the value and export potential of agricultural products.
The Apna Ghar Scheme was another major subject discussed at the meeting. Launched by the prime minister in April 2026, the programme aims to provide housing and construction financing of up to Rs10 million through easier instalment arrangements. The government expects the scheme to encourage home ownership and support industries connected with housing and construction. These include businesses involved in building materials, construction services and other related activities. The prime minister said the scheme could contribute to activity across several industries associated with the housing sector.
To address financing-related challenges, the prime minister directed the finance minister to resolve issues faced by stakeholders in the SME, agriculture and housing sectors and prepare a comprehensive action plan. He also instructed the SBP and the Federal Board of Revenue (FBR) to work together on tax-related issues affecting SMEs and exporters. Both institutions were asked to develop a strategy for risk coverage that could help banks extend loans more easily to businesses that face difficulties meeting conventional lending requirements.
The meeting was also informed about the SBP’s work on three main areas intended to increase financing for priority sectors. These include improvements in regulatory arrangements, risk and cost-sharing partnerships between the government and banks, and the promotion of digital facilities. The approach is intended to address some of the barriers that can limit lending, including financing risks, operational costs and complicated application procedures.
Digital access was identified as another part of the financing strategy. According to the PMO statement, a digital portal has recently been launched through which businesspersons can submit loan applications and monitor their progress. The facility is expected to make the application process more accessible by allowing applicants to follow their cases through an online system. The meeting was also informed that work was continuing to simplify loan procedures, reduce documentation requirements and improve access to financial resources through digital channels.
The figures presented during the meeting showed that the Apna Ghar Scheme had received significant financing approvals by October 23. Loans worth Rs511 billion had been approved, covering 86,899 applicants. However, the number of applicants who had actually received funds was lower than the total number of approvals. The statement said that 15,584 applicants had been disbursed loans amounting to Rs91 billion. The difference between approvals and disbursements highlights the importance of monitoring the complete lending process, from application and approval to the release of funds.
In the wider housing finance sector, the total volume of loans had reached Rs455 billion, while the number of beneficiary borrowers increased to 187,317. These figures were shared separately from the Apna Ghar Scheme statistics during the briefing. The housing sector remains a focus of the government’s financing programme because access to credit can support residential construction and related economic activity.
Agricultural financing was reported at Rs1,329 billion, with nearly 3.5 million beneficiaries. In the SME sector, the total loan volume stood at Rs1,148 billion, while the number of businesspersons receiving financing reached 342,458. These figures indicate the scale of existing lending to the two priority sectors, although the government wants banks to expand financing further during the current fiscal year.
According to the briefing, targets have been established to increase loan volumes in both agriculture and SMEs to Rs1,500 billion by the end of the current fiscal year. Achieving these targets will require continued lending activity, improved access for eligible borrowers and coordination between banks and relevant government institutions. The meeting was also informed that risk-sharing and credit-guarantee initiatives had been introduced for the housing, agriculture and SME sectors. Such arrangements are intended to provide additional support against lending risks and encourage financial institutions to serve borrowers who may otherwise face difficulties obtaining credit.
The prime minister’s latest instructions place renewed emphasis on the role of banks in financing Pakistan’s productive sectors. The government has identified agriculture, SMEs and housing as areas where greater access to credit can support investment, employment and economic activity. The SBP’s regulatory and digital initiatives, along with government-backed risk-sharing arrangements, are expected to support this objective. However, the reported gap between approved and disbursed housing loans also makes the pace of actual fund release an important measure of progress.
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