PM Shehbaz orders faster loans for SMEs, approves governance structure to double financing by 2028

Prime Minister Shehbaz Sharif on Tuesday directed the relevant authorities to expedite access to loans for small and medium enterprises (SMEs) and approved a three-tier governance structure aimed at doubling SME financing by 2028.

Chairing a high-level review meeting on expanding access to finance for the business community, particularly SMEs, the prime minister directed banks to accelerate lending to the sector, according to a Prime Minister's Office news release.

Prime Minister Shehbaz Sharif said easy access to credit for the business sector is the foundation of sustainable economic growth. He noted that improved financing would not only boost investment and production but also create employment opportunities and increase exports.

The prime minister directed that access to loans for the business community, especially SMEs, be expedited without delay.

He also announced that the bank extending the highest volume of credit to the business sector, particularly SMEs, would receive a special annual award.

To institutionalize the drive for improved access to finance, the prime minister approved a three-tier governance structure. He announced that he would personally chair the top-tier committee overseeing the provision of financial facilities. A steering committee on expanding Access to Finance (A2F) will be led by the finance minister, with the governor of the State Bank of Pakistan serving as co-chairman. Separate sector-specific sub-committees will also be established for SMEs, agriculture, information technology, renewable energy, and housing finance.

Officials briefing the meeting said SME financing by banks, currently standing at Rs1.15 trillion as of June 2026, is targeted to increase to Rs2 trillion by June 2028. The number of SME borrowers is expected to rise from 324,000 to 775,000 over the same period, while the share of SME financing in overall bank lending is projected to increase from 9.9% to 13% by June 2028.

They added that a scoring system would be introduced to monitor progress and evaluate banks' performance in SME and broader business lending, encouraging them to meet the government's financing targets.

The meeting was attended by Federal Ministers Ahad Khan Cheema and Muhammad Aurangzeb, Minister of State Bilal Azhar Kayani, Special Assistant to the Prime Minister Haroon Akhtar, State Bank of Pakistan Governor Jameel Ahmad, Pakistan Banks' Association Chairman Zafar Masud, and other senior government officials.