Banks Make Getting Business Loans Easier
Lending to small and medium enterprises (SMEs) in Pakistan rose 33 percent year-on-year (YoY) to Rs.
Lending to small and medium enterprises (SMEs) in Pakistan rose 33 percent year-on-year (YoY) to Rs.
Article outline
- What happened
- The key numbers
- What comes next
- The bottom line
Key points
- The SME infection ratio, the share of non-performing loans (NPLs) in total SME lending, fell to 11.7 percent in the April-June 2026 quarter.
- Earlier this year, Prime Minister Shehbaz Sharif pressed faster SME financing to boost exports.
- While SME NPLs have stayed between Rs, according to AHL, the improvement is partly due to solid expansion in overall lending.
- Nevertheless, the brokerage cautioned that SME-related bad loans may rise ahead as lately went on loans mature and their true credit quality becomes clearer.
Lending to small and medium enterprises (SMEs) in Pakistan rose 33 percent year-on-year (YoY) to Rs. 943 billion as of June 2026, according to State Bank of Pakistan (SBP) data compiled by Arif Habib Limited (AHL).
This was well ahead of overall bank lending. It grew 14 percent YoY during the same period. Pakistan Closes Iran Border. On Track for SBP Target.
AHL remarked the current expansion is in line with the SBP's target of expanding SME financing to Rs. 1.5 trillion by June 2027.
Earlier this year, Prime Minister Shehbaz Sharif pressed faster SME financing to boost exports. Bad Loan Ratio Improves.
Notably, the SME infection ratio, the share of non-performing loans (NPLs) in total SME lending, fell to 11.7 percent in the April-June 2026 quarter. It had peaked at 23 percent in the July-September 2024 quarter.
While SME NPLs have stayed between Rs, according to AHL, the improvement is partly due to solid expansion in overall lending. 80 billion and Rs. 125 billion.
Last month, the SECP additionally proposed raising the limit on micro and SME loans. Stay Connected with ProPakistani.
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Taken together, the developments around banks Make Getting Business Loans Easier point to a situation that is still moving, and the coming days should bring more clarity.
