Prime Minister Shehbaz Sharif has directed the finance ministry to speed up lending to small businesses, farmers and applicants under the Apna Ghar housing scheme, saying growth and jobs through these sectors are among the government’s top priorities.
Chairing a meeting on credit facilities for priority sectors on Monday, the prime minister urged the State Bank of Pakistan and the Ministry of Finance not to extend concessions to banks that are lagging in lending to farmers, small and medium enterprises and Apna Ghar beneficiaries.
He praised banks that are already facilitating credit to these sectors, and directed the State Bank and the Federal Board of Revenue to jointly resolve tax-related problems faced by small businesses and exporters. He also called for a comprehensive risk coverage strategy to make it easier for banks to lend to small firms.
The prime minister said small and medium enterprises have considerable potential to raise economic growth, exports and employment, while adding value to agricultural produce could also lift exports. The Apna Ghar scheme, he added, would stimulate industries linked to housing and construction.
Officials told the meeting that the State Bank is working on regulatory improvements, risk and cost-sharing between the government and banks, and digital facilities to expand lending to priority sectors. It has also launched the SME Connect portal, allowing businesses to apply for loans and track their applications.
Under Apna Ghar, Rs511 billion in loans had been approved as of 23 October, covering 86,899 applicants, of which Rs91 billion had been disbursed to 15,584 borrowers. Total housing finance had reached Rs455 billion, benefiting 187,317 borrowers.
Agricultural lending stood at Rs1,329 billion, benefiting around 3.5 million people, while financing for small and medium enterprises had reached Rs1,148 billion, covering 342,458 entrepreneurs. Targets have been set to lift lending to both agriculture and small businesses to Rs1,500 billion each by the end of financial year 2027.
