Finance Minister Muhammad Aurangzeb reviews progress on SME, agriculture, housing and electric vehicle financing initiatives.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the fourth meeting of the Access to Finance Steering Committee on Wednesday, reviewing progress on initiatives designed to improve affordable and inclusive financing in key sectors.
The meeting at the Finance Division focused on implementation across small and medium enterprises (SMEs), agriculture, housing, information technology, exports, renewable energy and electric mobility. Aurangzeb stressed that the committee should remain focused on measurable outcomes and practical implementation.
He directed relevant sub-committees to examine major proposals before they are presented to the main committee, allowing recommendations and implementation challenges to receive detailed review.
SME Financing Crosses Rs1 Trillion
The committee was informed that SME financing reached Rs1.067 trillion by the end of August 2026, benefiting 323,987 borrowers and representing 9.90 percent of domestic private advances.
The government aims to raise SME financing to Rs2 trillion and increase borrowers to 775,000 by June 2028. The sector’s share of domestic private advances is also targeted to reach 13 percent.
Aurangzeb called for clear bank-wise strategies to maintain credit growth and welcomed progress on the wholesale SME financing framework, which is expected to improve access for more businesses.
Agriculture Credit Expands
Agriculture financing stood at Rs1.268 trillion at the end of August, covering more than 3.39 million borrowers and accounting for 10.90 percent of domestic private advances.
Under the Zarkhez-e-Asaan Zarai Qarza initiative, 58,919 farmers had registered, while 35,838 applications were received. Banks approved 16,964 loans worth Rs7.349 billion, with Rs1.956 billion disbursed through 5,174 loans.
The minister stressed that approved financing should be converted into actual disbursements quickly, particularly for smallholder and tenant farmers.
Housing Finance Sees Sharp Increase
The Wazir-e-Azam Apna Ghar Programme – Ghar Ho To Apna also recorded strong growth. Approved housing finance reached Rs351.3 billion by September 4, increasing Rs38.3 billion from the end of August.
Of 156,813 applications received, 60,349 loans worth Rs351.3 billion were approved, while 9,717 loans amounting to Rs51.13 billion were disbursed. The programme offers financing for up to 20 years, with a fixed 5 percent rate for the first 10 years.
EV Financing and SME Support
Under the Pakistan Accelerated Vehicle Electrification (PAVE) Programme, 17 participating banks had approved 17,118 applications involving Rs2.581 billion. A total of 4,228 loans worth Rs804 million were disbursed, resulting in the delivery of 1,860 electric bikes.
The meeting also reviewed SMEDA initiatives covering financial literacy, SME financing help desks and over-the-counter documents and tools. Around 100 of 560 planned financial literacy programmes have already been conducted nationwide.
Aurangzeb emphasized that improving access to finance requires stronger coordination, better financial preparedness and improved documentation and cash-flow visibility among underserved businesses.
He said translating approvals into actual credit, investment and economic activity would remain central to Pakistan’s broader objective of private-sector-led and sustainable economic growth.