Prime Minister Muhammad Shehbaz Sharif on Tuesday directed the State Bank of Pakistan to further streamline loan procedures for small and medium enterprises, startups, and the agricultural sector to expand financial inclusion and support economic growth.
Chairing a high-level review meeting on SME and farm financing, the prime minister said credit for SMEs, small farmers, and service providers must be ensured on a priority basis, particularly to promote the use of modern technology in agriculture, according to a statement from the Prime Minister’s Office.
The meeting was informed that private sector lending has increased significantly in recent years. By December 2025, the number of private sector borrowers had doubled compared to 2021-22, exceeding 303,000, while the total loan volume reached Rs1.1 trillion.
Participants were also briefed that the number of farmers benefiting from bank credit is expected to rise to 3 million this year, up from 2.8 million last year. Commercial banks are increasingly prioritising financing for new businesses and the acquisition of modern machinery, including in the livestock and fisheries sectors, the forum was told.
Emphasising the role of small businesses, the prime minister said SMEs form the backbone of economies in developed countries and are critical for industrial and economic development. He directed that youth be provided with entrepreneurship training to encourage new business creation and job generation.
The prime minister said facilitating loans for the acquisition of modern technology by the private sector, especially SMEs and small farmers, remains a top government priority. He announced that he would personally monitor progress and that a sub-committee would be formed to further simplify lending procedures.
The meeting decided that Special Assistant to the Prime Minister Haroon Akhtar, along with the Small and Medium Enterprises Development Authority team, will visit all provinces, including Gilgit-Baltistan and Azad Jammu and Kashmir, to help formulate a comprehensive SME facilitation policy.
According to the PMO, the State Bank has launched a fully digital “Zarkhaiz-e-App” to facilitate agricultural financing for small farmers. A financial management and awareness training programme for SMEs is also set to be launched, while a loan scheme for service providers supplying modern agricultural machinery is already operational in Punjab.
The meeting was attended by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, Finance Minister Muhammad Aurangzeb, State Minister Bilal Azhar Kayani, SBP Governor Jameel Ahmad, and chief secretaries from all provinces and regions.
