Pakistan's housing finance reaches PKR 426bn as agriculture loans hit PKR 1.35tr

Pakistan's Finance Minister Muhammad Aurangzeb on Wednesday reviewed progress on expanding access to finance for small businesses, farmers and homebuyers, as outstanding housing finance reached PKR 426 billion and agriculture financing PKR 1.35 trillion by the end of September.

He called for greater focus on implementation and measurable outcomes.

What did the Access to Finance Steering Committee review?

The fifth meeting of the Access to Finance Steering Committee, chaired by Aurangzeb, reviewed SME, agriculture and housing finance, electric vehicle financing and measures to improve lending data.

Housing and agriculture financing both increased between June and the end of September, while SME financing also grew.

How much has SME financing grown in Pakistan?

The committee noted that outstanding SME financing rose by PKR 23 billion from PKR 1.114 trillion in June to more than PKR 1.137 trillion at the end of September. The number of SME borrowers increased by more than 25,000 to about 350,862.

Aurangzeb called for faster growth to meet the government's medium-term target of increasing SME financing to PKR 2 trillion and the number of borrowers to 775,000 by June 2028. He said achieving the targets would require participation from commercial banks, microfinance institutions and other financial service providers. He directed authorities to develop mechanisms that would enable microfinance institutions and other lenders to play a larger role in expanding SME outreach.

The minister also called for closer coordination among the Small and Medium Enterprises Development Authority, the State Bank of Pakistan and financial institutions to improve SME bankability. He said capacity building, financial literacy, documentation support and digital tools should result in greater readiness among small businesses to obtain formal financing.

How has agriculture financing in Pakistan changed?

Outstanding agriculture financing increased by PKR 94.7 billion from PKR 1.26 trillion in June to more than PKR 1.35 trillion by the end of September. The number of borrowers rose by 196,303 to about 3.46 million. Under the government's Zarkhez-e-Asaan Zarai Qarza scheme, 5,563 unsecured loans worth PKR 2.1 billion had been disbursed to small farmers, according to the Finance Division.

The committee called for greater financing across the agricultural value chain, particularly for livestock, fisheries and other underserved segments. Aurangzeb said livestock had significant potential and called for greater private-sector participation and appropriate risk-mitigation mechanisms to expand financing in the sector. He directed authorities to work with the State Bank and other stakeholders on an operational and financing framework and present concrete proposals to the committee.

How much has housing finance in Pakistan grown?

Outstanding housing finance increased by PKR 103 billion from PKR 323 billion in June to PKR 426 billion by the end of September, while the number of borrowers reached 231,550. Under the Wazir-e-Azam Apna Ghar program, PKR 76 billion had been disbursed to 13,214 borrowers. Approved loans worth PKR 350 billion were awaiting disbursement.

The committee discussed expanding financing beyond homebuyers to developers and builders. Aurangzeb called for an effective builder-financing framework to address supply-side constraints and support affordable housing.

What is the status of electric vehicle financing in Pakistan?

The committee reviewed the Pakistan Accelerated Vehicle Electrification scheme, which aims to promote affordable financing for two- and three-wheeler electric vehicles. A total of 17,262 applications worth PKR 2.54 billion had been approved by the end of September. Of these, 4,839 loans worth PKR 975 million had been disbursed and 2,725 electric vehicles delivered.

Aurangzeb directed officials to focus on converting approved financing into actual vehicle deliveries and removing implementation bottlenecks. He stressed that government-backed financing programs should remain commercially viable and targeted at genuine market gaps. Public support, he said, should encourage sustainable private-sector participation rather than create prolonged dependence on subsidies.

He directed ministries, regulators, financial institutions and industry participants to implement agreed measures within defined timelines. The meeting was attended by senior officials including the federal secretary of the Ministry of National Food Security and Research, the Securities and Exchange Commission of Pakistan chairman, Pakistan Banks' Association chairman, Karandaaz Pakistan CEO and SMEDA CEO, along with representatives of the Finance Division, State Bank and other relevant institutions.