PM promises incentives for banks expanding loans to housing sector, farmers, SMEs

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday said the government would encourage banks and financial institutions that play a greater role in extending loans to farmers, small and medium-sized enterprises (SMEs) and the housing sector.

Chairing a review meeting on the Access to Finance Plan 2026-28, the prime minister directed banks and financial institutions to ensure easier and uninterrupted access to financing for farmers, SMEs and low- and middle-income households.

“Banks that play a strong role in providing loans will be encouraged by the government,” Shehbaz said, according to a statement issued after the meeting.

He described agriculture as the backbone of the country’s economy and said promoting the sector was a national responsibility. He directed authorities to ensure that farmers had access to financial resources without unnecessary hurdles and on easy terms.

The meeting reviewed progress on financing initiatives under the Prime Minister’s Apna Ghar Scheme, agriculture and SMEs.

Housing finance

The prime minister said providing affordable housing to low-and-middle-income groups was the government’s priority and directed provincial chief secretaries to conduct a comprehensive survey to identify properties and plots that could qualify for mortgage financing under the Prime Minister’s Apna Ghar Scheme.

وزیراعظم محمد شہباز شریف کی زیر صدارت Access to Finance Plan 2026-28 کے حوالے سے جائزہ اجلاس آج اسلام آباد میں منعقد ہوا. اجلاس میں وزیراعظم اپنا گھر اسکیم، زراعت اور ایس ایم ایز کے شعبوں کی ترقی کیلئے فنانسنگ پر پیشرفت کے حوالے سے جاری اقدامات کا جائزہ لیا گیا.

اجلاس سے گفتگو… pic.twitter.com/FANvguoLpW

— Prime Minister's Office (@PakPMO) September 9, 2026

The government is also developing a system to identify plots across the country that meet mortgage requirements, with Islamabad selected for the pilot phase, the meeting was told.

Under the Apna Ghar scheme, 147,504 applications have so far been received, of which 53,127 have been approved, according to the briefing.

The total value of approved applications stands at Rs313.42 billion, while loans worth Rs45.43 billion have been disbursed to 8,739 applicants.

The meeting was also told that an effective mechanism would be developed to involve leading housing developers in the scheme in order to make the process more integrated and expand access to housing finance.

Agriculture lending

Bank lending to the agriculture sector stood at Rs1.268 trillion in August 2026, while the Access to Finance Plan 2026-28 has set a target of Rs2 trillion by June 2028.

The government is also seeking to expand access to agricultural financing through the Zarkhez-e app, which allows farmers to apply for loans through a simplified digital process.

The app has received 35,838 loan applications, of which Rs7.35 billion worth of financing has been approved. Loans amounting to Rs1.96 billion have so far been disbursed, the meeting was told.

Shehbaz directed the authorities to ensure that farmers could access financing without disruption and on affordable and easy terms.

SME financing

Bank financing to the SME sector reached Rs1.067 trillion by August 2026, against a target of Rs2 trillion by June 2028 under the Access to Finance Plan.

The Small and Medium Enterprises Development Authority (SMEDA) has provided financial literacy training to 1,096 SMEs over the past three months, the meeting was told.

The plan is aimed at improving access to formal financing for key sectors of the economy, including agriculture, SMEs and housing, while encouraging financial institutions to play a greater role in supporting economic activity.

Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Ahsan Iqbal, Rana Tanveer Hussain, Muhammad Aurangzeb and Riaz Hussain Pirzada, Minister of State Bilal Azhar Kiyani, Prime Minister’s Adviser Haroon Akhtar Khan, State Bank of Pakistan Governor Jameel Ahmad, chief secretaries of the four provinces, Azad Jammu and Kashmir and Gilgit-Baltistan, IBRD Country Director Bolorma Amgaabazar, presidents and CEOs of Pakistani banks and government officials attended the meeting.