Government aims to disburse Rs700 billion for 125,000 housing units while targeting Rs1,500 billion each in agriculture and SME lending by June 2027.
ISLAMABAD: Prime Minister Shehbaz Sharif has directed the authorities to simplify documentation requirements and facilitate the issuance of unencumbered title deeds for applicants seeking housing finance under the Prime Minister’s Apna Ghar scheme.
Chairing a meeting on access to finance for the agriculture, housing and small and medium-sized enterprises (SMEs) sectors on Wednesday, the prime minister stressed that the timely provision of loans to these priority sectors was essential for promoting economic growth and national development.
During the meeting, Shehbaz reviewed lending progress and access to financial resources under the Apna Ghar housing scheme, alongside financing facilities for SMEs and the agriculture sector.
He encouraged banks actively financing these priority sectors to continue supporting national development. He also directed banks with unsatisfactory performance to improve their lending activities to qualify for government encouragement and support.
The prime minister instructed the relevant ministries, their secretaries and the State Bank of Pakistan (SBP) to consult stakeholders associated with housing, agriculture and SME financing and obtain proposals to make existing schemes more effective and results-oriented.
He directed that the consultation process be completed by the end of October 2026, with recommendations submitted accordingly.
Apna Ghar housing loans reach Rs448 billion
The meeting was informed that banks had approved loans worth Rs448 billion for 75,198 applicants under the Prime Minister’s Apna Ghar scheme.
Of the approved amount, Rs76 billion had been disbursed to 14,000 beneficiaries. The government has set a target of providing Rs700 billion in housing loans for 125,000 housing units during the current year.
Participants were also informed that the processing time for housing finance applications had been reduced to 15 working days, while the number of required documents had been cut from 25 to five.
The prime minister directed the authorities to further simplify the application process and make it easier for prospective beneficiaries to obtain the necessary information and documentation.
He also called for facilitating the acquisition of unencumbered title deeds required for housing finance. In addition, he directed the committee responsible for developers’ finance to finalise its recommendations and submit them at the earliest.
Agriculture lending target set at Rs1,500 billion
The meeting was informed that agricultural lending had reached Rs1,352 billion, benefiting 3.455 million people.
The government aims to increase agricultural financing to Rs1,500 billion and expand the number of beneficiaries to 4.5 million by June 2027.
Shehbaz also directed that inactive warehouses and silos operated by the Pakistan Agricultural Storage and Services Corporation (PASSCO) be made operational under a public-private partnership model.
He said collaboration with the private sector should improve storage capacity and ensure the safe preservation of farmers’ produce.
The prime minister appreciated Allied Bank’s model of establishing warehouses for agricultural commodities and providing loans to farmers against their stored produce. He directed the authorities to expand the initiative with private-sector participation.
He also appreciated Allied Bank’s investment plan for a proposed SME park.
SME financing target reaches Rs1,500 billion
The meeting was informed that banks had extended loans worth Rs1,137 billion to more than 352,000 businesses in the SME sector.
By June 2027, the government aims to increase SME lending to Rs1,500 billion and expand the number of borrowing businesses to 575,000.
Participants reviewed measures to introduce revised SME regulations and further simplify housing finance procedures.
Other initiatives discussed included joint risk-sharing arrangements, the promotion of supply-chain financing, authenticated data sharing and measures to improve access to credit for businesses and farmers.
The meeting also reviewed progress on developers’ finance and the steps being taken to strengthen banks’ institutional capacity to extend financing to the three priority sectors.
Federal ministers Rana Tanveer Hussain, Dr Musadik Masood Malik, Attaullah Tarar, Riaz Hussain Pirzada, Ahad Khan Cheema and Shaza Fatima Khawaja attended the meeting, along with Prime Minister’s Adviser Haroon Akhtar, Minister of State for Finance Bilal Azhar Kiani, chief executives of JS Bank, Askari Bank, Allied Bank, Habib Metro Bank, Bank of Khyber and MCB Islamic Bank, and senior officials of relevant institutions.