ISLAMABAD — Pakistan aims to increase bank financing for small and medium-sized businesses to Rs2 trillion by June 2028, as the government works to improve access to loans for entrepreneurs and growing companies.
Finance Minister Muhammad Aurangzeb discussed the target at a meeting of the Access to Finance Steering Committee, according to a Finance Division statement issued on October 7.
Outstanding loans to small and medium-sized enterprises (SMEs) reached Rs1.137 trillion during the first quarter of the 2026–27 financial year, an increase of Rs23 billion over the three months.
The number of SME borrowers also grew by more than 25,000 to approximately 350,862. The government wants to increase that figure to 775,000 by June 2028.
These figures measure loans that businesses still owe, rather than the total value of new loans issued during the quarter.
Access to bank financing can help small businesses buy equipment, purchase supplies, employ workers and expand into new markets. Many smaller firms, however, find it difficult to secure loans because they lack the financial records or guarantees that lenders require.
The committee also reviewed lending for housing, agriculture and electric vehicles. Together with SMEs, these priority sectors received around Rs222 billion in financing during July to September.
Aurangzeb called for better information-sharing to help banks assess loan applications, while emphasising safeguards for the use of financial data.
He also urged officials to focus on implementing proposals and measuring results.
The government’s targets are ambitious: reaching Rs2 trillion in SME lending would require a substantial increase from current levels. Progress will depend on banks expanding access to suitable financing and more businesses meeting lending requirements.