Govt to Punish Banks Delaying Loans to 3 Sectors

Prime Minister Shehbaz Sharif has directed the State Bank of Pakistan (SBP) and the Finance Ministry to take action against banks that are slow to provide loans to farmers, small and medium enterprises (SMEs) and beneficiaries of the Prime Minister's Apna Ghar housing scheme.

Key points

• Sindh's Foreign Loans Shoot Up 49% in 2 Years, Fastest of Any Province.
• 1, 329 billion, benefiting approximately 3.5 million individuals.
• The prime minister additionally stated the Apna Ghar scheme would backing housing and construction while stimulating a number of industries linked to the sector.
• Shehbaz remarked SMEs had significant potential to backing economic expansion, boost exports and generate employment.
• As part of these efforts, the SBP lately rolled out the SME Connect digital portal.

Chairing a review session in Islamabad on facilitating credit access to priority sectors, the prime minister stated expanding financing for SMEs, housing and agriculture was a key administration priority to improve the economy and create employment opportunities for young residents.

While stressing that financial institutions must extend the same level of cooperation to priority sectors that they receive from the administration and its institutions, he praised banks that had performed well in facilitating loans under administration initiatives.

Sindh's Foreign Loans Shoot Up 49% in 2 Years, Fastest of Any Province. PM Calls for Easier Financing for SMEs, Agriculture and Housing.

Shehbaz remarked SMEs had significant potential to backing economic expansion, boost exports and generate employment. He described agriculture as the backbone of the national economy and remarked the administration was working to growth exports through value addition in agricultural commodities.

In practice, the prime minister additionally stated the Apna Ghar scheme would backing housing and construction while stimulating a number of industries linked to the sector. He emphasized that banks played a critical role in private sector development and should facilitate lending to priority sectors.

He directed the finance minister to resolve financing-related problems faced by stakeholders in the SME, agriculture and housing sectors and develop a comprehensive action plan. While developing a comprehensive risk coverage strategy to facilitate SME lending, the SBP and Federal Board of Revenue (FBR) were additionally instructed to work together to address tax matters affecting SMEs and exporters. Govt Announces 3 Career-Ending Punishments for Petroleum Levy Defaulters. SBP Expands Digital and Risk-Sharing Measures.

Meanwhile, the session was informed that the SBP was working on three main pillars to rise lending to priority sectors: improving regulations, sharing risks and costs between the administration and banks, and expanding digital facilities.

As part of these efforts, the SBP lately rolled out the SME Connect digital portal. It allows businesses to apply for loans and track the progress of their applications. The portal is available at (.

In practice, the briefing additionally highlighted progress in priority lending for housing, agriculture and SMEs. As of October 23, 2026, loans worth Rs. 511 billion had been approved under the Prime Minister's Apna Ghar Program, covering 86, 899 applications. A total of Rs. 91 billion had been disbursed to 15, 584 applicants. Priority Sector Lending Reaches Rs. 1.3 Trillion in Agriculture.

Meanwhile, the session was informed that the overall volume of housing finance had reached Rs. 455 billion, with 187, 317 borrowers benefiting from loans.

Agricultural lending stood at Rs. 1, 329 billion, benefiting approximately 3.5 million individuals. In the SME sector, financing reached Rs. 1, 148 billion, with 342, 458 businesses receiving loans.

Targets have been set to growth lending to both the agriculture and SME sectors to Rs. 1, 500 billion by the end of fiscal year 2027. Finance Minister Announces 3 Goals.

Notably, the briefing additionally covered administration initiatives involving risk-sharing and credit guarantees for housing, agriculture and SMEs. Efforts are underway to simplify lending procedures, reduce documentation requirements and improve access to financing through digital systems.

Performance indicators for commercial banks throughout all three priority sectors were presented at the gathering, with the prime minister praising banks that had demonstrated solid performance. Stay Connected with ProPakistani.

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For now, govt to Punish Banks Delaying Loans to 3 Sectors remains the part of the story worth watching, and further updates are likely as more details are confirmed.