Housing, agriculture, SME and export financing gain momentum as government pushes reforms to expand private-sector investment and inclusive growth.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the fortnightly meeting of the Access to Finance Steering Committee, reviewing progress on measures aimed at expanding affordable financing across housing, agriculture, SMEs, exports, information technology and renewable energy.
The meeting highlighted strong advances since the end of FY2026, alongside legal, regulatory and institutional reforms designed to strengthen Pakistan’s financing ecosystem and channel greater financial-sector capacity toward productive investment.
Housing Finance Gains Momentum
Housing finance increased from around Rs294 billion at the end of June to Rs307 billion by mid-August. The Wazir-e-Azam Apna Ghar Program also recorded significant growth, with applications rising 52% to nearly 139,000 and approvals climbing 84% to more than 46,000.
Approved financing almost doubled to Rs279 billion, while disbursements increased 59% to over 7,600 loans worth more than Rs38 billion.
The committee also reviewed reforms supporting mortgage lending, including revised State Bank of Pakistan prudential regulations, simplified documentation, digital processes, informal-income assessment and longer financing tenors. The Finance Institutions (Recovery of Finances) Amendment Act, 2026 was highlighted as a major reform to strengthen recovery and enforcement mechanisms.
Agriculture and SME Lending Expands
Agriculture borrowers increased by about 115,000 to 3.37 million, while agricultural financing remained around Rs1.26 trillion. Under Zarkhez-e – Asaan Zarai Qarza, more than 58,000 farmers have registered for collateral-free financing.
SME financing stood at approximately Rs1.05 trillion, covering nearly 330,000 businesses. A credit-scoring pilot involving 13 banks is being used to explore alternative methods of assessing borrowers and reducing reliance on traditional collateral.
The government aims to increase agriculture and SME financing to Rs1.5 trillion by June 2027 and Rs2 trillion by June 2028.
Export Financing and EV Lending Under Review
The committee also examined export financing and incentives, including the Performance Based Rebate on Incremental Exports introduced from July 1, 2026.
Progress under the Pakistan Accelerated Vehicle Electrification Programme was also reviewed, with more than 83,000 applications received, around 15,800 approvals and nearly 4,000 loans disbursed by mid-August.
Senator Muhammad Aurangzeb directed regular bank-wise monitoring of approvals, disbursements and borrower growth, stressing that improved Access to Finance should translate into stronger investment, employment, exports and sustainable economic growth.