Prime minister directs authorities to remove lending bottlenecks and make the SME Portal operational by November to improve access to credit.
Prime Minister Muhammad Shehbaz Sharif on Wednesday directed authorities to remove obstacles restricting access to finance for the housing, agriculture and small and medium-sized enterprise (SME) sectors, calling for a more effective lending system.
Chairing a review meeting on access to finance, the prime minister also ordered the SME Portal to become operational by the end of November to facilitate lending to small and medium-sized businesses.
The portal will enable real-time monitoring of loans provided by banks, as well as business facilities such as letters of credit (LCs).
Government Targets Higher SME Lending
Shehbaz directed the Small and Medium Enterprises Development Authority (SMEDA) to strengthen the capacity of SMEs, promote modern technology, improve productivity and help businesses integrate into global value chains.
The meeting reviewed lending performance by the National Bank of Pakistan (NBP) and First Women Bank.
The prime minister welcomed NBP’s 76% loan approval rate for housing finance, while directing its newly appointed president to hire leading professionals to improve the bank’s performance.
He also ordered departmental action, without discrimination, against employees who fail to deliver the required results.
The prime minister directed other provinces to accelerate land record digitisation on the model of Punjab, saying digital records would make housing finance more transparent and easier for banks to provide.
Rs426bn Approved Under Apna Ghar Scheme
The meeting was informed that under the Prime Minister’s Apna Ghar Scheme, loans worth Rs426 billion had been approved for 71,690 applicants.
Of the approved amount, Rs76 billion had been disbursed to 13,214 individuals. The government has set a target of providing Rs700 billion in housing loans for 125,000 residential units during the current year.
Agricultural lending has reached Rs1.352 trillion, benefiting 3.455 million people. The government aims to increase agricultural financing to Rs1.5 trillion and the number of beneficiaries to 4.5 million by June 2027.
The meeting was told that improved access to agricultural finance would help raise farmers’ productivity and stimulate economic activity.
SME Loans Reach Rs1.137tr
SME financing has reached Rs1.137 trillion, benefiting around 350,000 entrepreneurs, against a target of Rs1.5 trillion for 565,000 entrepreneurs by June 2027.
Authorities are working to make financing easier for SMEs, support investment in modern technology and help businesses compete in international markets.
The meeting also reviewed measures to simplify SME regulations and improve housing finance procedures.
Officials discussed initiatives including joint risk-sharing in lending, supply-chain financing and verified data sharing to improve access to credit.
Digital systems are also being promoted to reduce the need for customers seeking small loans to make repeated visits to bank branches.
The meeting was attended by Federal Ministers Rana Tanveer Hussain, Ahad Khan Cheema, Muhammad Aurangzeb, Riaz Hussain Pirzada and Attaullah Tarar, Prime Minister’s Adviser Haroon Akhtar, State Bank of Pakistan Governor Jameel Ahmad and other senior officials.