Prime Minister Shehbaz Sharif said on Monday that improving the economy and providing employment to youth through the development of small and medium enterprises (SMEs), housing, and agriculture sectors is the government's top priority. He was chairing a review meeting on the facilitation of credit provision to these sectors.
During the meeting, he remarked, "Banks performing well in facilitating credit to agriculture, housing, and SMEs under government initiatives are commendable." He added, "The State Bank of Pakistan (SBP) and the Ministry of Finance should not grant concessions to banks that are slow in providing loans to farmers, small businesses, and consumers under the Prime Minister's Apna Ghar scheme."
He emphasized that banks are vital for private sector development and should cooperate with priority sectors just as the government does. "SMEs have great potential to grow the economy, promote exports, and create jobs.
The agriculture sector is the backbone of the economy, and we are working to increase exports through value addition," he noted. He further stated that the Apna Ghar scheme would boost industries related to housing and construction.
The Prime Minister directed the Finance Minister to resolve financing issues for SME, agriculture, and housing stakeholders and to formulate a comprehensive action plan. He also instructed the SBP and the Federal Board of Revenue (FBR) to jointly resolve tax issues for SMEs and exporters, and to develop a risk coverage strategy for easier loan access.
Participants were informed that the SBP is working on three pillars: improving regulations, sharing risks and costs, and promoting digital facilities. The SME Connect digital portal has been launched to allow business owners to apply for loans and track their progress.
As of October 23, Rs511 billion in loans have been approved under the Apna Ghar Program, with 86,899 loans sanctioned, while Rs91 billion has been disbursed to 15,584 applicants. Total housing finance has reached Rs455 billion for 187,317 beneficiaries.
The agriculture sector loan volume stands at Rs1,329 billion for 3.5 million beneficiaries, while the SME sector has reached Rs1,148 billion for 342,458 entrepreneurs. The government aims to increase these volumes to Rs1,500 billion by the end of the 2027 financial year.
This strategic shift is expected to provide a significant boost to the national economy by empowering local entrepreneurs and reducing unemployment rates across the country. The Prime Minister reiterated that the government is committed to removing bureaucratic hurdles that hinder the growth of these vital sectors.
He urged the financial institutions to adopt a more proactive approach in supporting the vision of a stable and prosperous Pakistan. Concluding the session, the Prime Minister expressed his satisfaction with the ongoing digital transformation in the banking sector, noting that technology is the key to financial inclusion for the common man and small business owners.