PM Shehbaz urges banks to speed loans for SMEs, housing, farming
Loans worth Rs511 billion have been approved under the Apna Ghar programme, while agricultural financing has reached Rs1,329 billion.
Prime Minister Shehbaz Sharif on Monday ordered the State Bank and the Finance Ministry to take a firm line with banks that delay government-backed loans, the state broadcaster Radio Pakistan reported.
Speaking at a review meeting in Islamabad, Sharif said small and medium enterprises, housing and agriculture can lift economic growth, boost exports and create jobs for young people.
He praised banks that have lent well to these sectors but urged all lenders to give priority sectors the same cooperation the government extends to banks, he said.
The meeting was told that the State Bank is focusing on better regulations, sharing risks and costs between the government and banks, and expanding digital services, including the SME Connect portal, which was recently launched so entrepreneurs can apply for loans and track applications.
Sharif directed the Finance Minister to resolve financing problems faced by stakeholders in the SME, agriculture and housing sectors and to prepare a comprehensive strategy, the meeting heard.
He also asked the State Bank and the Federal Board of Revenue to work together on tax issues facing small businesses and exporters, and called for a comprehensive risk coverage strategy to make loans easier to obtain for SMEs.
As of Oct. 23, loans worth Rs511 billion had been approved under the Prime Minister's Apna Ghar programme for 86,899 applications, and Rs91 billion had been disbursed to 15,584 applicants.
Total housing finance reached Rs455 billion, benefiting 187,317 borrowers, while agricultural financing stood at Rs1,329 billion, benefiting around 3.5 million people.
SME financing stood at Rs1,148 billion and benefited 342,458 businesses, the meeting was informed.
Targets have been set to raise financing for agriculture and SMEs to Rs1,500 billion by the end of fiscal year 2027, officials told the meeting.
The government has introduced risk-sharing and credit guarantee measures for the housing, agriculture and SME sectors, and work is underway to simplify loan procedures, reduce required documents and improve access to funds, the meeting was told.
