Islamabad: Prime Minister Muhammad Shehbaz Sharif has directed the State Bank of Pakistan (SBP) to further simplify and accelerate loan procedures for small and medium enterprises (SMEs), startups, and small farmers, as private sector lending crossed Rs. 1.1 trillion by December 2025.
The directive was issued while chairing a high-level review meeting focused on expanding access to credit and strengthening the role of the private sector in economic growth.
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Credit Access Key to Economic Growth
The prime minister stressed that easy and timely access to financing is essential for modernising agriculture, supporting entrepreneurship, and boosting employment.
He instructed that service providers and farmers should be prioritised for loans to help adopt modern agricultural technologies, improve productivity, and reduce costs.
“Access to finance must be treated as a national priority,” the prime minister said, adding that sustainable economic growth depends on empowering productive sectors.
SMEs Identified as Economic Backbone
Shehbaz Sharif highlighted that SMEs form the backbone of developed economies, and Pakistan must follow a similar growth model to expand its industrial base and create jobs.
He also directed authorities to ensure that young people receive entrepreneurship training, enabling them to launch new businesses and contribute to employment generation.
Surge in Private Sector Borrowing
The meeting was informed that the number of private sector borrowers has doubled compared to FY 2021–22, reaching more than 303,000 borrowers by December 2025.
Officials said this increase reflects growing confidence in the financial system and improved outreach of banking services.
Agricultural Lending Expands Nationwide
Participants were also told that the number of farmers benefiting from loans is expected to reach 3 million this year, up from 2.8 million last year, indicating broader access to agricultural financing.
The prime minister noted that improving credit availability for farmers is critical for ensuring food security and rural development.
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Nationwide SME Policy in the Works
Shehbaz Sharif instructed Special Assistant Haroon Akhtar and the Small and Medium Enterprises Development Authority (SMEDA) to visit all provinces, including Gilgit-Baltistan and Azad Jammu and Kashmir, to develop a comprehensive SME facilitation policy.
He announced that he would personally monitor progress on loan disbursement and form a subcommittee to further streamline financing procedures and remove bottlenecks.
