Karachi (Commerce Desk) — The State Bank of Pakistan has set a target to increase lending facilities for small and medium-sized enterprises (SMEs) to Rs1.5 trillion by June 2028, while a plan has also been prepared to increase the number of SME borrowers to 750,000.
Addressing the Pakistan Banking Summit 2026, State Bank Governor Jameel Ahmad said that providing financial facilities to key sectors such as small and medium-sized businesses, agriculture, and low-cost housing is not only a major challenge for the banking sector but also an important opportunity.
He said that sustainable economic growth requires a strong banking system that promotes investment in productive sectors and supports business activities.
According to the State Bank Governor, agriculture, SMEs, and low-cost housing are important pillars for employment opportunities, export growth, and economic stability; however, these sectors still face a shortage of adequate financial resources.
He stated that between June 2021 and December 2025, the volume of SME financing has more than doubled, while the number of businesses receiving loans has increased by nearly 75 percent.
Jameel Ahmad termed these developments encouraging and said that banks now need to further expand the SME sector through modern methods and new strategies.
Bank of Punjab President and Chief Executive Officer and Chairman Pakistan Banks Association Zafar Masood said that the biggest obstacle in providing loans to the private sector is the lack of documentation of businesses.
He said that until businesses are registered and included in the tax system, banks will not be able to accurately assess their financial position and provide loans.
According to Zafar Masood, under the State Bank’s new strategy, reliance on lending only to specific sectors is being reduced, while a system is being developed that will promote regulatory reforms, digital facilities, risk-sharing mechanisms, and capacity building.