ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to jointly address tax-related problems faced by small and medium-sized enterprises (SMEs) and exporters.
The move is part of the government’s efforts to improve access to loans for businesses, farmers and other priority sectors.
Chairing a meeting on financing facilities for SMEs, housing and agriculture, the prime minister asked the Finance Ministry to resolve obstacles faced by stakeholders and develop a comprehensive strategy to improve lending.
He also called for a stronger risk-coverage mechanism to help small businesses secure loans more easily.
Shehbaz said the development of SMEs, agriculture and housing was among the government’s key priorities. He noted that these sectors could stimulate economic growth and generate employment opportunities, particularly for young people.
The prime minister appreciated banks that had performed well in extending loans under government-backed programmes. However, he directed the SBP and Finance Ministry not to offer concessions to banks that were reluctant to provide financing to farmers, SMEs and applicants under the Prime Minister’s Apna Ghar Scheme.
He described banks as essential partners in private-sector development. He said financial institutions should extend the same level of cooperation in priority sectors that the government and its institutions provided to the banking industry.
Shehbaz highlighted the potential of SMEs to strengthen the economy, increase exports and create jobs. He also called agriculture the backbone of the national economy and stressed the need to increase exports by adding value to agricultural products.
He said the Apna Ghar Scheme would also support industries associated with housing and construction.
During the meeting, officials informed the prime minister that the SBP was focusing on three main areas to expand financing for priority sectors. These included improving regulations, sharing risks and costs between the government and banks, and expanding digital services.
As part of the initiative, the central bank has launched the SME Connect digital portal. The platform allows business owners to submit loan applications and monitor their progress.
Officials said that, as of October 23, loans worth Rs511 billion had been approved for 86,899 applications under the Apna Ghar Programme. Of this amount, Rs91 billion had been disbursed to 15,584 applicants.
Housing finance had reached Rs455 billion, benefiting 187,317 borrowers. Agricultural lending stood at Rs1,329 billion, reaching around 3.5 million people. Meanwhile, SME financing had totalled Rs1,148 billion, with 342,458 businesses receiving loans.
The government aims to increase lending to both the agriculture and SME sectors to Rs1,500 billion each by the end of fiscal year 2027.
The meeting was also briefed on risk-sharing arrangements and credit-guarantee measures introduced for housing, agriculture and SMEs. Officials said efforts were underway to simplify loan procedures, reduce documentation requirements and improve access through digital systems.
The prime minister also reviewed the performance of commercial banks in financing the three priority sectors and praised institutions that had delivered strong results.
Several federal ministers attended the meeting, including Ahsan Iqbal, Rana Tanveer Hussain, Dr Musadik Malik, Mian Riaz Hussain Pirzada, Muhammad Aurangzeb, Attaullah Tarar and Shaza Fatima Khawaja.
Prime Minister’s Adviser Haroon Akhtar, Minister of State Bilal Azhar Kiani, SBP Governor Jameel Ahmad, lawmakers Hafizuddin and Chaudhry Iftikhar Nazir, senior government officials and representatives of leading commercial banks were also present.
