Islamabad: Prime Minister Shehbaz Sharif has called on the State Bank of Pakistan (SBP) to simplify and expedite loan approval and disbursement procedures. This move aims to enable more citizens to benefit from housing finance, as well as loans for small and medium-sized enterprises (SMEs) and agriculture.
The prime minister’s directive followed a briefing revealing that out of Rs426 billion worth of government-approved housing loans under the Prime Minister’s Apna Ghar programme, only Rs76 billion has been disbursed to date, leaving a significant gap of Rs350 billion.
During a meeting with leaders of major commercial banks in Islamabad on Friday, officials shared that the government has set a financing target of Rs700 billion for the construction and provision of 125,000 housing units for the fiscal year 2026-27 under the Apna Ghar initiative. Discussions are also ongoing to develop a framework that would facilitate easier access to loans for housing developers.
PM Sharif expressed gratitude to the banking sector for supporting government efforts aimed at enabling home ownership, providing financial resources to SMEs, and enhancing farmers’ productive capacity. He emphasized the critical role of SMEs, describing them as the backbone of Pakistan’s economy, whose growth is essential for creating employment and stimulating economic activity.
The prime minister highlighted that improving access to financing for SMEs, housing, and agriculture would drive employment, investment, production, and overall economic growth.
Regarding SME financing, the meeting was informed that approximately 350,862 business owners have received loans totaling Rs1,137 billion. The government aims to increase SME lending to Rs1,500 billion and expand the number of beneficiaries to 565,000 by June 2027.
Sharif reiterated that government initiatives targeting priority sectors are designed to enhance financial access for ordinary citizens, entrepreneurs, and farmers. He stressed the importance of removing barriers to lending and making financing more accessible to small businesses, which play a vital role in job creation and economic development.
Bank presidents and chief executives expressed confidence in the government’s economic policies and pledged to strengthen collaboration to expand lending in priority sectors.
On agricultural financing, the meeting was told that loans had reached Rs1,352 billion by the end of September 2026, benefiting 3,455,313 farmers. The government plans to increase agricultural financing to Rs1,500 billion and raise the number of beneficiaries to 4.5 million by June 2027.
PM Sharif underscored the importance of agricultural financing in improving farmers’ economic conditions, boosting agricultural output, and ensuring food security. He directed that priority be given to small farmers to help them adopt modern farming techniques and enhance productivity, stating, “Expanding access to small farmers through agricultural financing is an urgent need. A bank’s strength lies in being a bank for small farmers as well.”
The prime minister met with heads of leading commercial banks to acknowledge their efforts in extending credit to housing, SMEs, and agriculture. The banking delegation praised Sharif’s leadership in stabilizing the economy and expressed confidence in the government’s economic policies. They also discussed ongoing cooperation to increase financing for priority sectors.
Federal ministers Ahsan Khan Cheema, Muhammad Aurangzeb, Riaz Hussain Pirzada, and Attaullah Tarar attended the meeting, along with Minister of State Bilal Azhar Kayani and SBP Governor Jameel Ahmad. Representatives from major banks including National Bank of Pakistan, United Bank Limited, Habib Bank Limited, Meezan Bank, Bank Alfalah, Standard Chartered, Bank of Punjab, BankIslami, and the House Building Finance Corporation were also present, accompanied by senior officials.
