Meeting Overview

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the fortnightly meeting of the Access to Finance Steering Committee, which reviewed progress on initiatives to expand affordable and inclusive finance across housing, agriculture, small and medium enterprises (SMEs), exports, information technology, renewable energy, and other priority sectors. The committee noted significant progress on select Access to Finance initiatives since the close of the last fiscal year, alongside legal, regulatory, and institutional reforms strengthening the financing ecosystem.

The Finance Minister said the objective is to channel greater financial-sector capacity towards productive investment, enterprise creation, home ownership, agricultural productivity, and exports, translating macroeconomic stability into stronger, private sector-led and inclusive growth.

Housing Finance

A central focus of the meeting was housing finance. The committee noted that total housing finance increased from around Rs294 billion at end-June to Rs307 billion by mid-August, a notable rise within a little under two months.

Progress under the Wazir-e-Azam Apna Ghar Program accelerated significantly. Since June, applications increased 52 percent to nearly 139,000; approvals rose 84 percent to over 46,000; approved financing nearly doubled from Rs144 billion to Rs279 billion; and loans disbursed increased 59 percent to over 7,600, amounting to more than Rs38 billion.

Legal and Regulatory Framework

The committee emphasised that the State Bank of Pakistan’s revised Prudential Regulations for Housing Finance support this momentum. These regulations include a 90:10 loan-to-value ratio, a 65 percent debt-burden ratio, informal-income assessment models, simplified property valuation and documentation, digital processes, and longer financing tenors.

The committee particularly highlighted the passage of the Financial Institutions (Recovery of Finances) (Amendment) Act, 2026 (FIRA) as a major structural reform, strengthening the legal framework for the recovery and enforcement of mortgage-based lending.

Agricultural and SME Financing

The committee reviewed progress in access to finance for agriculture and SMEs. Agricultural borrowers increased from approximately 3.26 million at the end of June to 3.37 million by mid-August, adding around 115,000 borrowers, with financing remaining near Rs1.26 trillion.

Under the Zarkhez-e-Asaan Zarai Qarza initiative, more than 58,000 farmers registered. Since June, bank approvals increased around 12 percent to nearly 16,700, approved financing limits exceeded Rs7.2 billion, and loans disbursed rose about 13 percent to nearly 5,000.

The committee also noted that formal financing for SMEs stood at about 1.05 trillion, covering approximately 330,000 businesses, and reviewed the ongoing credit-scoring pilot across 13 banks. Medium-term ambition is to expand both agriculture and SME financing to Rs1.5 trillion by June 2027 and Rs2 trillion by June 2028.

Export Sector

For exporters, the committee reviewed the Performance Based Rebate on Incremental Services (PRIE), effective July 1, 2026, under which exporters achieving growth of up to 10 percent qualify for a 1 percent rebate on incremental exports, growth above 10 percent attracts a 2 percent rebate. Particular emphasis has been placed on enabling export-oriented SMEs to access financing through banks under facilities administered by the Export-Import Bank of Pakistan (EXIM Bank).

Green Financing

Progress under the PAVE Programme was also discussed. By mid-August, more than 83,000 applications had been received, around 15,800 conditional approved, and nearly 4,000 loans delivered were disbursed. Since June, approvals increased by approximately 24 percent and disbursements by 34 percent, while the number of electric vehicles delivered more than tripled from 471 to over 1,500.

Digital and Monitoring Initiatives

The committee reviewed the Prime Minister’s online digital housing portal. The Finance Minister directed regular bank-by-bank weekly and monthly monitoring of financing, borrower growth, approvals, and disbursements, and called for wider public awareness through frequent communication so that farmers, SMEs, exporters, prospective homeowners, and entrepreneurs are fully aware of available financing opportunities.

Concluding the Landsby, Senator Aurangzeb said access to finance is ultimately about expanding access to economic opportunity. He stressed the goal of channeling greater financial-sector capacity towards productive investment, creativity, enterprise creation, energy and home ownership, and agricultural productivity and exports, thereby translating macroeconomic stability into broader, private sector-led growth.