Finance minister says SBP-led task force will expand SME financing and strengthen private sector credit to support sustainable economic growth.
KARACHI: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday announced the establishment of a dedicated SME Finance Task Force to improve access to financing for small and medium enterprises (SMEs), urging the banking industry to play a greater role in expanding private sector lending and accelerating economic growth.
Speaking at the Pakistan Banking Summit 2026 in Karachi, the finance minister said the task force would be led by the State Bank of Pakistan (SBP) and comprise senior representatives from the Pakistan Banks’ Association (PBA), the Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce and industry, and the Ministry of Finance.
He said the task force would formulate practical recommendations to enhance SME financing and broaden access to bank credit across Pakistan.
Banks urged to expand private sector lending
Aurangzeb stressed that commercial banks have a vital role in supporting economic growth by increasing financing for SMEs, exporters, agriculture, manufacturing, construction, housing and the information technology sector.
He said expanding access to finance for SMEs should become a collective responsibility of the entire banking industry rather than being driven by only a handful of institutions.
The finance minister added that the necessary budgetary allocations for these priority sectors had already been incorporated into the Federal Budget 2026–27.
Stronger economic fundamentals
Highlighting Pakistan’s improving macroeconomic position, Aurangzeb said the country had concluded the previous fiscal year on a strong footing.
He pointed to a primary budget surplus, one of the lowest fiscal deficits in recent years, improved public debt indicators, a sustained current account performance, record workers’ remittance inflows, rising foreign exchange reserves and renewed access to international capital markets through successful sovereign debt issuances, including Pakistan’s inaugural Panda Bond.
He reiterated that the government’s priority is to transform macroeconomic stability into sustainable, export-led economic growth through structural reforms and consistent policymaking.
Budget reforms and tax modernisation
The finance minister said the FY2026–27 federal budget introduced significant taxation and financing measures aimed at enhancing competitiveness, encouraging investment and supporting exporters, agriculture and manufacturing, while also providing tax relief for the salaried class.
He reaffirmed the government’s commitment to introducing a Medium-Term Tax Strategy to provide greater certainty and predictability for businesses and investors.
Aurangzeb also highlighted ongoing efforts to modernise tax administration through a technology-driven operating model designed to minimise human intervention, improve transparency and strengthen trust between taxpayers and revenue authorities.
Focus on financial sector reforms
The finance minister said the government would continue expanding risk-sharing and partial credit guarantee schemes, particularly for SMEs and small farmers, while maintaining targeted financing support for export-oriented industries.
He also emphasised the need to diversify government borrowing through non-bank financing channels and deepen domestic debt capital markets, reducing reliance on commercial banks and creating greater lending capacity for the private sector.
Discussing wider financial sector reforms, Aurangzeb highlighted the government’s agenda covering privatisation, climate finance, digital assets and financial innovation.
He said the recently enacted Virtual Asset Act 2026 had established a modern regulatory framework for digital assets and revealed that the government is exploring innovative financing instruments, including the tokenisation of sovereign debt.
The finance minister also underscored the importance of strengthening cyber resilience, describing it as a shared national responsibility essential to supporting Pakistan’s expanding digital financial ecosystem.
Concluding his address, Aurangzeb reaffirmed the government’s commitment to working closely with banks and other stakeholders to build a modern, inclusive and resilient financial system capable of supporting investment, innovation and long-term sustainable economic growth.