SME, agriculture financing needs faster execution: finance minister

Finance Minister Muhammad Aurangzeb has called for faster disbursements and stronger implementation of financing schemes for small and medium enterprises (SMEs) and agriculture, saying expanded access to finance must translate into tangible benefits for businesses and farmers.

Chairing the sixth meeting of the Access to Finance (A2F) Steering Committee on Wednesday, the minister stressed the need for greater urgency and effective execution by financial institutions and implementing agencies, his ministry said.

The meeting reviewed progress in financing for SMEs, agriculture, housing, exports and the government’s flagship schemes, including Apna Ghar, Zarkhez-e and the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme.

According to a Finance Division press release, outstanding SME financing reached Rs1.148 trillion as of October 23, 2026, including Rs538 billion for small enterprises.

The committee also reviewed the Small and Medium Enterprises Development Authority’s (SMEDA) capacity-building roadmap, which focuses on financial literacy, improved documentation, accounting support and digital tools to help businesses access formal financing.

In agriculture, outstanding credit reached Rs1.329 trillion, with approximately 3.5 million borrowers.

Under the Zarkhez-e: Asaan Zarai Qarza Scheme, 20,176 loan applications worth Rs8.674 billion had been approved, while 6,132 collateral-free loans worth around Rs2.34 billion had been disbursed to smallholder farmers.

The committee also discussed ways to strengthen livestock and dairy financing and increase private-sector participation across agricultural value chains.

Housing finance recorded outstanding financing of Rs455 billion, serving 241,500 borrowers.

Under the Apna Ghar Programme, 86,896 applications involving Rs511 billion in financing had been approved, while 15,584 loans worth approximately Rs91 billion had been disbursed.

Aurangzeb appreciated progress in housing finance, particularly under the Apna Ghar scheme, but called for greater efforts to expand financing for SMEs and agriculture.

The committee also discussed accelerating housing disbursements and addressing supply-side constraints through financing for builders, developers and under-construction projects.

Under the PAVE Scheme, which promotes affordable electric two- and three-wheelers, 21,918 applications involving around Rs3.06 billion in financing had been approved. Of these, 5,506 loans worth Rs1.093 billion had been disbursed, while 3,263 electric vehicles had been delivered to customers.

The committee reviewed digital initiatives to improve credit assessment and lending, including pilot projects for SME credit scoring and exporter financing.

The finance minister emphasised secure, consent-based data sharing, confidentiality safeguards and timely resolution of data-linkage issues to support wider adoption of digital and cash-flow-based lending.

Legal and regulatory reforms to strengthen financing frameworks, improve recovery mechanisms, manage lending risks and expand access for underserved segments were also discussed.

The committee underscored the role of access to finance in promoting economic inclusion, entrepreneurship, job creation and poverty reduction.

The meeting was attended by the federal secretaries for finance, housing and works, and national food security and research; the governor of the State Bank of Pakistan; the chairman of the Securities and Exchange Commission of Pakistan; the chief executives of Karandaaz Pakistan and SMEDA; and senior officials from the Finance Division, SBP and SECP.