Pakistan is making progress in expanding access to affordable finance as the government pushes reforms aimed at supporting housing, agriculture, small businesses, exports and other key sectors.
Finance Minister Senator Muhammad Aurangzeb chaired the latest meeting of the Access to Finance Steering Committee on Monday. The committee reviewed progress on several initiatives designed to increase financial inclusion and direct more lending toward productive economic activity.
The government says the broader goal is to turn improved macroeconomic stability into stronger private-sector investment, job creation and inclusive economic growth.
Housing Finance Shows Strong Growth
Housing finance has recorded notable progress in recent weeks.
Total housing finance increased from around Rs294 billion at the end of June to Rs307 billion by mid-August.
The Wazir-e-Azam Apna Ghar Program has also gained significant momentum. Applications increased by 52 percent to nearly 139,000, while approvals climbed 84 percent to more than 46,000.
Approved financing nearly doubled from Rs144 billion to Rs279 billion.
Meanwhile, the number of loans disbursed increased by 59 percent to more than 7,600, with total disbursements exceeding Rs38 billion.
These developments come as authorities work to strengthen mortgage lending through regulatory and legal reforms.
Mortgage Reforms Aim to Boost Lending
The State Bank of Pakistan has revised its housing-finance regulations as part of the wider reform effort.
The changes include a 90:10 loan-to-value ratio and a 65 percent debt-burden ratio. They also introduce approaches for assessing informal incomes.
In addition, simplified property valuation and documentation, digital processing and longer financing periods could make mortgage financing easier to access.
The committee also highlighted the Financial Institutions (Recovery of Finances) (Amendment) Act, 2026 as an important structural reform.
The legislation is expected to strengthen the recovery process for financial institutions. As a result, lenders could gain greater confidence in expanding mortgage-based financing.
Agriculture Financing Continues to Expand
Agriculture is another major focus of Pakistan’s access-to-finance strategy.
The number of agriculture borrowers rose from about 3.26 million at the end of June to 3.37 million by mid-August.
That represents an increase of approximately 115,000 borrowers.
Agriculture financing remained around Rs1.26 trillion during the period.
The government is also expanding the Zarkhez-e, or Asaan Zarai Qarza, initiative.
More than 58,000 farmers have registered under the programme. It aims to provide unsecured financing to small farmers, including tenant farmers, mainly for purchasing agricultural inputs.
Bank approvals under the scheme increased by around 12 percent since June to nearly 16,700.
Approved financing limits have exceeded Rs7.2 billion, while almost 5,000 loans have been disbursed.
The committee called for faster conversion of applications and approvals into actual financing.
That could help farmers increase productivity while supporting rural incomes and financial inclusion.
SME Financing Gets Greater Attention
Small and medium-sized enterprises remain central to the government’s strategy.
Formal SME financing currently stands at around Rs1.05 trillion, covering approximately 330,000 businesses.
The committee also reviewed a credit-scoring pilot involving 13 banks.
The pilot aims to improve how banks assess businesses by using alternative information and cash-flow indicators rather than relying heavily on traditional collateral.
This could help more small businesses qualify for formal financing.
The government has set an ambitious medium-term target.
It wants both agriculture and SME financing to reach Rs1.5 trillion by June 2027 and Rs2 trillion by June 2028.
The strategy also calls for a substantial increase in the number of borrowers.
Export Financing Remains a Priority
The government is also linking access to finance with its export-led growth strategy.
Officials reviewed measures to improve financing and refinancing support for exporters and SMEs.
The focus includes working capital as well as longer-term investment financing.
The Performance Based Rebate on Incremental Exports, introduced from July 1, 2026, is another part of the strategy.
Under the programme, exporters recording growth of up to 10 percent can receive a 1 percent rebate on incremental exports.
Those achieving growth above 10 percent can receive a 2 percent rebate.
The government is particularly focused on helping export-oriented SMEs obtain financing through banks under facilities administered by the Export-Import Bank of Pakistan.
Electric Vehicle Financing Expands
The Pakistan Accelerated Vehicle Electrification, or PAVE, programme is also showing progress.
More than 83,000 applications had been received by mid-August.
Around 15,800 applications had been approved, while nearly 4,000 loans had been disbursed.
Since June, approvals have increased by about 24 percent.
Disbursements have risen by 34 percent, while electric vehicles delivered have more than tripled from 471 to over 1,500.
The programme forms part of the government’s broader effort to support financing for new economic and technological sectors.
Digital Housing Access Under Review
The committee also reviewed the Prime Minister’s online digital housing portal.
Officials stressed the need for stronger coordination among relevant institutions.
The objective is to make the financing process simpler and more accessible for prospective homeowners.
Digitalisation could also reduce paperwork and improve the speed of applications and approvals.
Government Wants Better Monitoring
Finance Minister Muhammad Aurangzeb directed officials to strengthen monitoring of financing activity.
The government plans to track bank-level performance on a weekly and monthly basis.
The monitoring will cover financing volumes, borrower numbers, approvals and actual disbursements.
Officials will also bring implementation problems before the Steering Committee with recommendations for resolving them quickly.
The government has previously established the Access to Finance Steering Committee to provide strategic oversight of the wider Access to Finance Plan 2026–2028.
Greater Awareness Could Increase Financial Inclusion
The finance minister also stressed the importance of public awareness.
Many farmers, entrepreneurs, exporters and prospective homeowners may not know about available financing programmes.
The government therefore plans to increase communication about these opportunities.
Greater awareness could encourage more businesses and households to seek formal financing.
It could also help increase private-sector credit and encourage financial institutions to develop new lending products.
Pakistan Targets More Inclusive Economic Growth
The government says access to finance should go beyond simply increasing bank lending.
Instead, it wants financing reforms to create wider economic opportunities.
Greater access to housing loans could support construction and related industries.
More agricultural financing could help farmers increase production.
Meanwhile, stronger SME lending could help businesses expand and create jobs.
Export financing could also help companies increase production and earn more foreign exchange.
Finance Minister Calls for Coordinated Action
Aurangzeb said the expanding financing ecosystem should combine legal reforms, digitalisation, better credit assessment, risk-sharing mechanisms and targeted lending.
He also called for closer cooperation between government institutions, banks and regulators.
The Finance Division, State Bank of Pakistan, Securities and Exchange Commission of Pakistan, Pakistan Banks’ Association, relevant ministries and financial institutions are expected to continue working together.
The government believes this coordination will be essential to turn financing commitments into actual loans and investment.
Access to Finance Could Support Pakistan’s Growth
Pakistan’s latest financing data show progress across several important sectors.
Housing finance is increasing, agriculture borrowers are growing and SME lending remains a major policy priority.
At the same time, export incentives and electric vehicle financing are expanding the scope of the programme.
The bigger challenge now is to ensure that approved financing reaches households, farmers and businesses quickly.
If the government can maintain the momentum, improved access to finance could support investment, employment, exports and broader economic activity.
For Pakistan, the ultimate objective is clear: turn greater access to finance into greater access to economic opportunity
