Islamabad:Prime Minister Shehbaz Sharif emphasized the importance of promoting small and medium enterprises (SMEs), housing, and agriculture as key priorities for strengthening the economy and creating employment opportunities for youth. He made these remarks while chairing a review meeting on access to finance for SMEs, housing, and agriculture sectors.
According to Radio Pakistan, the Prime Minister commended banks for their performance in extending loans to these sectors, and instructed the State Bank and the Finance Ministry to ensure banks do not delay loan provisions under government initiatives. He highlighted the crucial role banks play in private-sector development and urged them to support priority sectors with the same dedication they receive from the government.
The Prime Minister noted the significant potential of SMEs to boost economic growth, enhance exports, and create job opportunities. He described agriculture as the backbone of the national economy and emphasized the government's efforts to increase exports through value addition in agricultural products. The Apna Ghar Scheme was also mentioned as a driver for industries linked to housing and construction.
Sharif directed the Finance Minister to address financing issues for stakeholders in the SME, agriculture, and housing sectors, and to develop a comprehensive strategy. He also instructed the State Bank and the Federal Board of Revenue to resolve tax-related issues for SMEs and exporters, and called for a risk coverage strategy to facilitate easy loan access for SMEs.
During the meeting, it was revealed that the State Bank is enhancing lending to priority sectors through improved regulations, risk and cost-sharing between the government and banks, and promoting digital facilities. The recent launch of the SME Connect digital portal will enable entrepreneurs to apply for loans and track their applications.
The meeting disclosed that loans worth 511 billion rupees have been approved under the Prime Minister's Apna Ghar Programme, with 91 billion rupees disbursed to applicants, and the total housing finance reaching 455 billion rupees. Additionally, agricultural financing has reached 1,329 billion rupees, benefiting 3.5 million people, while SME financing stands at 1,148 billion rupees, aiding 342,458 businesses. Targets have been set to increase financing for agriculture and SMEs to 1,500 billion rupees by the end of fiscal year 2027.
The government has introduced risk-sharing and credit guarantee measures for the housing, agriculture, and SME sectors, and is working to simplify loan procedures, reduce documentation, and improve financial resource access. The meeting also reviewed commercial banks' performance indicators across all three priority sectors.