Pakistan is targeting an increase in agricultural financing to Rs1.5 trillion by June 2027 as Prime Minister Shehbaz Sharif has called on commercial banks to expand lending and improve access to credit for small farmers. The target was discussed during a meeting in Islamabad with the heads of the country’s 10 major commercial banks, where officials reviewed progress in agricultural financing, small and medium enterprise (SME) lending, and the government’s Apna Ghar housing programme. The prime minister emphasised that wider access to financing could support agricultural production, employment, investment, and economic activity, while helping farmers obtain the resources required to improve their operations.
According to the briefing presented at the meeting, agricultural loans had reached Rs1,352 billion by the end of September 2026, benefiting 3,455,313 people. The government aims to increase the total volume of agricultural lending to Rs1,500 billion and expand the number of beneficiary farmers to 4.5 million by June 2027. Achieving these targets would require banks to increase the availability of credit and extend financing to a broader section of the farming community. The prime minister stressed that agricultural finance plays an important role in improving farmers’ livelihoods, increasing crop production, and strengthening national food security. Access to loans can help farmers meet cultivation expenses, purchase agricultural inputs, invest in equipment, and manage other costs associated with farming activities.
Shehbaz Sharif specifically called for small farmers to receive greater attention in banks’ agricultural lending strategies. He said financing should help these farmers adopt modern farming methods and improve productivity, while emphasising that major commercial banks must also serve smaller agricultural borrowers. Improving access to formal credit for small farmers is an important consideration because agricultural financing needs can vary according to farm size, production requirements, and available resources. Broader lending access could allow more farmers to invest in their operations and manage seasonal financial requirements. The meeting placed this issue within the government’s wider effort to increase the reach of bank financing across sectors that contribute to employment, production, and economic development.
The discussions also covered progress under the Apna Ghar Program, which aims to support housing construction and delivery through financing. Officials informed the meeting that loans worth Rs426 billion had been approved under the programme, while Rs76 billion had been disbursed. For fiscal year 2026-27, the programme has set a financing target of Rs700 billion, with the objective of supporting the construction and delivery of 125,000 housing units. The difference between approved loans and actual disbursements was also discussed, with the prime minister calling for a reduction in the gap to ensure beneficiaries receive financing without unnecessary delays. Loan approvals indicate that applications have progressed through the relevant approval process, but timely disbursement remains necessary for borrowers to use funds for construction and other eligible expenses.
The government is also consulting stakeholders on a framework intended to improve developers’ access to financing. This work is relevant to the implementation of housing projects, where the availability and timing of funds can affect construction schedules and the delivery of residential units. By addressing financing requirements for developers alongside lending to individual beneficiaries, the programme seeks to support housing activity through different parts of the construction and financing process. The meeting’s review of the Apna Ghar Program demonstrated that the government is monitoring both the volume of approved financing and the funds actually released, with the prime minister stressing the need to improve implementation and ensure loans reach their intended recipients.
SME financing was another major subject of the meeting, with officials reporting that approximately 350,862 business owners had received loans totalling Rs1,137 billion. The government aims to raise SME lending to Rs1,500 billion and increase the number of beneficiaries to 565,000 by June 2027. Prime Minister Shehbaz Sharif described small and medium enterprises as an important part of Pakistan’s economy, highlighting their potential to create employment and stimulate business activity. Access to financing can help smaller businesses meet working capital needs, purchase equipment, expand operations, and invest in new products or services. Increasing the number of borrowers, alongside the overall value of loans, is therefore a key part of the government’s stated objective to widen access to formal business finance.
The agricultural, housing, and SME targets discussed at the meeting reflect a broader focus on directing bank lending towards sectors associated with production, employment, and household needs. Agricultural financing is intended to help farmers improve productivity and strengthen food supplies, while SME loans can support business expansion and job creation. Housing finance, meanwhile, is expected to contribute to residential construction and the delivery of new housing units. The progress figures presented during the meeting provide a snapshot of lending activity as of the end of September 2026 for agriculture, alongside reported approvals and disbursements under the housing programme and lending to SME borrowers.
Representatives of the participating banks expressed support for cooperation with the government to expand financing in the identified priority sectors. They also praised the prime minister’s leadership in supporting economic stability and expressed confidence in the government’s economic policies. The meeting concluded with a focus on continued coordination between the government and commercial banks to increase lending and improve access to financing. Pakistan’s ability to meet the June 2027 targets will depend on expanding the number of eligible borrowers served, increasing the availability of credit, and ensuring approved funds are disbursed in a timely manner. For the agricultural sector in particular, the government has identified small farmers, higher productivity, and improved food security as central priorities in its push to increase formal bank financing.
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