SBP sets SME financing target at Rs 1.5 trillion
Published 13 hours ago | By Pak24tv
The State Bank of Pakistan (SBP) has set a target of increasing financing of small and medium enterprises (SMEs) to Rs 1.5 trillion by June 2028, while a plan has also been made to increase the number of SME borrowers to 750,000.
Addressing the Pakistan Banking Summit 2026, Governor State Bank Jamil Ahmed said that providing financial facilities to priority sectors such as small and medium enterprises, agriculture and low-cost housing is a major challenge as well as an important opportunity for the banking sector. A banking system that fully supports productive investment is essential for sustainable economic growth.
He said that agriculture, SMEs and low-cost housing are important pillars of employment, exports and economic stability, however, these sectors still face a shortage of financial resources.
According to the Governor, the volume of SME financing has more than doubled between June 2021 and December 2025, while the number of businesses taking loans has increased by about 75%. Terming these results as encouraging, he said that now banks will have to expand in this sector through innovation and new strategies.
President and CEO of Bank of Punjab and Chairman Pakistan Banks Association Zafar Masood said that the biggest obstacle to loans in the private sector is the undocumented nature of businesses. Unless businesses are registered and included in the tax net, banks will not be able to provide loans by accurately assessing their financial status. Under the new strategy of the SBP, a system is being created by reducing dependence on directed loans, in which regulatory reforms, digital innovation, risk sharing and capacity building are promoted.
Governor Jamil Ahmed said that recent regulatory reforms have included increased credit limits, expanded unsecured loans, simplified credit procedures and improved prudential regulations for SMEs, so that banks can introduce innovative financial models such as cash flow financing based on modern technology, collaboration with fintech institutions and alternative data.
The Governor said that digital transformation also plays a central role in SBP’s Vision 2028, with more than 92% of retail financial transactions being carried out through digital channels, while the number of financial accounts in the country has crossed 268 million and Raast IDs has crossed 49 million.
Atif Bajwa, CEO of Bank Alfalah and Chairman of Pakistan Banking Summit, also stressed the need to increase financial facilities for agriculture, SMEs, housing, environment and economic inclusion of women. He urged the banking sector to invest more in technology and human resources.
