PM Shehbaz urges banks to expand lending to farmers, SMEs and homebuyers

Prime Minister Shehbaz Sharif on Wednesday directed banks and financial institutions to expand lending to farmers, small and medium-sized enterprises and the housing sector. He said the government would support institutions that play an active role in extending credit.

What did PM Shehbaz say about bank lending to farmers and SMEs?

Sharif chaired a review meeting on the Access to Finance Plan 2026-28, examining progress on financing for agriculture, housing and SMEs, including the Prime Minister's Apna Ghar Scheme. He called agriculture the backbone of the economy and said banks must remove unnecessary hurdles for farmers seeking credit, according to a statement from the Prime Minister's Office.

How much has Pakistan lent to farmers and SMEs so far?

Bank lending to agriculture stood at PKR 1.268 trillion in August 2026, against a target of PKR 2 trillion by June 2028 under the Access to Finance Plan. The Zarkhez-e app had received 35,838 applications for easy agricultural loans, with PKR 7.35 billion approved and PKR 1.96 billion already disbursed. SME lending reached PKR 1.067 trillion in the same period, against the same PKR 2 trillion target.

The Small and Medium Enterprises Development Authority provided financial literacy training to 1,096 SMEs over the past three months, officials told the meeting. Sharif said banks making a strong contribution to expanding lending would receive government encouragement.

What is the status of the Apna Ghar housing scheme?

Sharif said affordable housing for low- and middle-income groups remained a government priority. He directed provincial chief secretaries to conduct a comprehensive survey of properties eligible for bank financing under the Apna Ghar scheme.

Officials said the scheme had received 147,504 applications, of which 53,127 were approved, with a total value of PKR 313.42 billion. Loans worth PKR 45.43 billion have been disbursed to 8,739 applicants so far. A system is also being developed to identify mortgage-eligible plots nationwide, with a pilot project planned for Islamabad, and the government plans to bring leading housing developers into the scheme.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Ahsan Khan Cheema, Rana Tanveer Hussain, Muhammad Aurangzeb and Riaz Hussain Pirzada, Minister of State Bilal Azhar Kayani, Prime Minister's Adviser Haroon Akhtar Khan, State Bank Governor Jameel Ahmad, provincial chief secretaries, IBRD Country Director Bolorma Amgaabazar, and senior bank and government officials.