ISLAMABAD, November 2, 2026: Prime Minister Shehbaz Sharif has directed the State Bank of Pakistan (SBP) and Ministry of Finance to take strict action against banks delaying loans under the Wazir-e-Azam Apna Ghar Program and other government-backed financing schemes for agriculture and small businesses.
Chairing a review meeting on Monday, the prime minister was informed that 187,317 borrowers were benefiting from housing finance nationwide, while loans worth Rs511 billion had been approved under the Wazir-e-Azam Apna Ghar Program.
According to the briefing, 86,899 housing loan applications worth Rs511 billion had been approved under the programme as of October 23, 2026. However, only 15,584 applicants had received disbursements totalling Rs91 billion.
The figures highlighted a substantial gap between approved housing loans and funds actually released to applicants.
Officials informed the meeting that the overall housing finance portfolio had reached Rs455 billion, with 187,317 borrowers benefiting across the sector.
The prime minister expressed concern over banks showing slow progress in providing financing to farmers, small and medium enterprises (SMEs) and applicants under the government-backed housing scheme.
He directed the SBP and Finance Ministry not to extend concessions to banks failing to facilitate borrowers under the government’s priority-sector lending initiatives.
Sharif praised banks demonstrating strong performance and said financial institutions must support government efforts to expand access to affordable credit.
The meeting also reviewed agricultural and SME financing, with officials reporting that agricultural lending had reached Rs1,329 billion, benefiting approximately 3.5 million borrowers.
SME financing stood at Rs1,148 billion, with 342,458 businesses receiving loans.
The government has set targets to increase lending in both agriculture and SME sectors to Rs1,500 billion each by the end of fiscal year 2027.
Officials briefed the prime minister on the SBP’s three-pronged strategy to expand priority-sector financing through regulatory improvements, risk and cost-sharing arrangements between the government and banks, and digital financial services.
The meeting was informed that the SME Connect digital portal had recently been launched to allow business owners to apply for financing and track their loan applications online.
The government has also introduced risk-sharing and credit guarantee arrangements for housing, agriculture and SME financing, alongside measures to simplify documentation and loan application procedures.
Sharif said expanding housing, agriculture and small businesses was essential for economic growth, employment generation and strengthening the private sector.
He emphasised that SMEs could contribute significantly to exports and job creation, while agricultural development and value addition could improve Pakistan’s export potential.
The prime minister said the Wazir-e-Azam Apna Ghar Program would also stimulate industries associated with housing and construction.
He directed Finance Minister Muhammad Aurangzeb to consult stakeholders in housing, agriculture and SME sectors, resolve financing difficulties and develop a comprehensive implementation strategy.
Sharif also instructed the SBP and Federal Board of Revenue (FBR) to jointly address tax-related issues faced by SMEs and exporters.
The prime minister further called for a comprehensive risk coverage framework to make financing more accessible to small and medium-sized businesses.
Federal ministers, senior government officials, SBP Governor Jameel Ahmad and representatives of leading commercial banks attended the meeting.