KARACHI, October 29, 2026 — The State Bank of Pakistan has introduced a financing framework to improve access to bank credit for small enterprises and farmers by allowing banks to work with specialised financial institutions.
Issued on Wednesday, the framework allows banks to extend financing through wholesale and agency arrangements instead of depending solely on their own branch networks.
Under these arrangements, participating banks can partner with eligible microfinance banks, non-banking microfinance companies and other non-bank financial institutions.
The institutions can assist banks in identifying borrowers, assessing loan applications, monitoring repayments and managing financing relationships.
According to the central bank, the framework is intended to expand lending to small businesses and agricultural borrowers who have limited access to conventional banking services.
Loans provided under the arrangements will count towards participating banks’ small-enterprise and small-farmer financing portfolios.
Eligible lending will also be covered by existing federal government risk-coverage schemes, which are designed to reduce some of the financial risks involved in serving underserved borrowers.
The framework lays down requirements for intermediary institutions, covering their financial soundness, operational experience and loan-portfolio quality.
These conditions are intended to encourage responsible lending and limit the risks associated with weak credit assessment.
For small businesses, easier access to financing could help cover working-capital requirements, equipment purchases and expansion.
Farmers could also gain additional options for financing agricultural inputs and other production expenses.