Pakistan PM Urges Banks to Speed Up Housing, SME and Farm Lending

ISLAMABAD Report By Muhammad Saleem ): Prime Minister Shehbaz Sharif met the heads of the country’s ten leading commercial banks on Friday and commended their efforts to expand lending for the government’s “Apna Ghar” housing programme, small and medium enterprises (SMEs) and agriculture.
Calling SMEs the backbone of Pakistan’s economy, the prime minister said their growth would create jobs and boost economic activity. He asked the State Bank of Pakistan to further simplify loan approval and disbursement, and urged banks to prioritise small farmers. “The country’s big bank is one that is also the small farmer’s bank,” he said.
Key figures presented at the meeting:
Housing: Loans worth Rs426 billion have been approved under the Apna Ghar programme, of which Rs76 billion has been disbursed. For FY2026-27, the target is Rs700 billion in financing for 125,000 housing units.
SMEs: Rs1,137 billion has been lent to about 350,862 entrepreneurs. The target by June 2027 is Rs1,500 billion and 565,000 borrowers.
Agriculture: Farm lending reached Rs1,352 billion by the end of September 2026, benefiting 3,455,313 people. The June 2027 target is Rs1,500 billion and 4.5 million farmers.
Sharif stressed narrowing the gap between loan approvals and actual disbursements, saying citizens benefit only when approved funds reach them on time. The meeting was told that consultations are under way on a framework for developers’ access to financing.
The bank heads expressed confidence in the government’s economic policies and pledged closer cooperation on priority sectors.
Federal ministers Ahad Khan Cheema, Muhammad Aurangzeb, Riaz Hussain Pirzada and Attaullah Tarar, Minister of State Bilal Azhar Kayani, and State Bank Governor Jameel Ahmad attended. Presidents and CEOs of National Bank, United Bank, Habib Bank, Meezan Bank, Bank Alfalah, Standard Chartered, Bank of Punjab, BankIslami and House Building Finance Corporation were also present.