PM urges SBP to speed up housing loan disbursements as Rs350bn gap persists

ISLAMABAD: Prime Minister Shehbaz Sharif has urged urged the State Bank of Pakistan (SBP) to simplify loan approval and disbursement procedures to ensure that more citizens could benefit from housing finance, small and medium-sized enterprises (SMEs) and agricultural lending.

The direction came after a meeting chaired by the prime minister was told that of the government’s approved housing loans worth Rs426 billion under the Prime Minister’s Apna Ghar programme, only Rs76 billion has been disbursed so far.

During a meeting with heads of leading commercial banks in Islamabad on Friday, it was told that under the Apna Ghar programme, the government has set a financing target of Rs700 billion for the construction and provision of 125,000 housing units during the fiscal year 2026-27.

The meeting was informed that consultations were also under way on a framework to facilitate developers’ access to loans.

PM Sharif thanked the banking sector for supporting government initiatives aimed at helping people own homes, providing financial resources to small businesses and increasing farmers’ productive capacity.

“Small and medium-sized enterprises are the backbone of Pakistan’s economy. Their growth will create new employment opportunities and promote economic activity,” the prime minister said.

He said that improved access to financing for SMEs, housing and agriculture would boost employment, investment, production and overall economic growth.

SME lending target set at Rs1.5 trillion

The meeting was informed that approximately 350,862 business owners had received loans worth a combined Rs1,137 billion under SME financing initiatives.

The government aims to increase the total volume of SME lending to Rs1,500 billion and the number of beneficiaries to 565,000 by June 2027.

Sharif said that government initiatives in priority sectors were intended to improve access to financial resources for ordinary citizens, entrepreneurs and farmers.

He emphasised the need to remove obstacles to lending and make financing more accessible to small businesses, which play an important role in generating employment and supporting economic activity.

The bank presidents and chief executive officers expressed confidence in the government’s economic policies and pledged to strengthen cooperation with the government to expand lending to priority sectors.

Agricultural loans reach Rs1.35 trillion

The meeting was told that agricultural lending had reached Rs1,352 billion by the end of September 2026, with 3,455,313 beneficiaries.

The meeting was told that the government aims to increase agricultural financing to Rs1,500 billion and the number of farmers benefiting from loans to 4.5 million by June 2027.

PM Sharif said that agricultural financing was essential to improving farmers’ economic conditions, increasing agricultural output and ensuring food security.

He directed that access to financing for small farmers be prioritised so they could adopt modern farming methods and improve their productivity.

“Expanding access to small farmers through agricultural financing is an urgent need. A bank’s strength lies in being a bank for small farmers as well,” he said.

Banks pledge support for priority sectors

The prime minister met the heads of the country’s leading commercial banks to acknowledge their efforts in extending credit to housing, SMEs and agriculture.

The delegation praised Sharif’s leadership in stabilising the economy and improving its direction, while expressing confidence in the government’s economic policies.

The bank representatives also discussed their cooperation with the government to increase financing for the designated priority sectors.

Federal ministers Ahsan Khan Cheema, Muhammad Aurangzeb, Riaz Hussain Pirzada and Attaullah Tarar attended the meeting, along with Minister of State Bilal Azhar Kayani and SBP Governor Jameel Ahmad.

Representatives of the National Bank of Pakistan, United Bank Limited, Habib Bank Limited, Meezan Bank, Bank Alfalah, Standard Chartered, Bank of Punjab, BankIslami and the House Building Finance Corporation also attended, along with senior officials.