The federal government has laid out an ambitious plan to expand access to bank financing for small businesses, farmers and homebuyers, with officials setting a target of Rs. 2 trillion in SME financing alone by June 2028 — almost double the current level.
The announcement came out of two related developments on September 9, 2026: the fourth meeting of the Access to Finance Steering Committee chaired by Finance Minister Muhammad Aurangzeb, and a separate high-level meeting chaired by Prime Minister Shehbaz Sharif focused on financing for agriculture, housing and small and medium enterprises (SMEs).
Where SME Financing Stands Today
According to figures presented to the Steering Committee, SME financing had already crossed the Rs. 1 trillion mark, reaching Rs. 1.067 trillion by the end of August 2026 and covering close to 324,000 borrowers. That represents about 9.9 percent of all domestic private sector lending.
Under the government’s medium-term Access to Finance Plan, covering 2026 to 2028, officials want to nearly double that figure to Rs. 2 trillion, while expanding the number of SME borrowers to 775,000. If achieved, this would push SME financing’s share of domestic private advances up to roughly 13 percent.
Finance Minister Aurangzeb directed banks to maintain their current lending pace and develop clear, bank-specific plans for scaling up SME credit. He also noted that simply raising loan limits would not be enough — SMEs themselves need better financial management, documentation and cash-flow visibility to qualify for formal bank financing in the first place.
Farmers and Agricultural Lending
Agriculture financing reached Rs. 1.268 trillion by the end of August 2026, covering an enormous base of more than 3.39 million borrowers and accounting for around 10.9 percent of domestic private advances. The government wants to raise this to Rs. 2 trillion and expand the borrower base to 5.5 million by June 2028.
A specific initiative discussed was the Zarkhez-e-Asaan Zarai Qarza programme, which offers uncollateralised financing to small and tenant farmers. As of the end of August 2026, 58,919 farmers had registered under the scheme out of 35,838 applications received. Banks had approved 16,964 loans worth Rs. 7.349 billion, while 5,174 loans worth Rs. 1.956 billion had actually been disbursed to farmers.
Separately, Prime Minister Shehbaz Sharif directed banks and financial institutions to expand lending to farmers on easier terms, calling agriculture “the backbone of Pakistan’s economy” during his meeting on access to finance.
Housing Finance Under the Apna Ghar Scheme
The Wazir-e-Azam Apna Ghar Programme — marketed under the tagline “Ghar Ho To Apna” — offers housing finance for terms of up to 20 years, with a fixed 5 percent interest rate for the first 10 years.
By September 4, 2026, approved housing financing under the scheme had reached Rs. 351.3 billion, an increase of Rs. 38.3 billion from the end of August alone. Banks had received 156,813 applications, approved 60,349 loans worth Rs. 351.3 billion, and disbursed 9,717 loans worth Rs. 51.13 billion.
At the PM-chaired meeting, officials reported a broader set of figures: 147,504 applications received, 53,127 approved with a total value of Rs. 313.42 billion, and Rs. 45.43 billion disbursed to 8,739 applicants. The Prime Minister also directed provincial chief secretaries to conduct a comprehensive survey of properties that could qualify for bank financing under the scheme, with a pilot project for identifying mortgage-eligible plots set to launch in Islamabad.
Aurangzeb directed officials to speed up disbursements against already-approved housing loans and to make mortgage financing easier for applicants going forward.
Electric Bike Financing Also on the Table
The meeting also touched on the Pakistan Accelerated Vehicle Electrification (PAVE) Programme, which finances electric bike purchases through 17 participating banks. So far, 17,118 applications worth Rs. 2.581 billion have been approved, with 4,228 loans worth Rs. 804 million disbursed and 1,860 electric bikes delivered to beneficiaries. The committee said the focus should now shift to speeding up deliveries for applicants whose financing has already been approved.
Building Financial Literacy
The Small and Medium Enterprises Development Authority (SMEDA) also briefed the committee on its financial literacy efforts, which include SME financing help desks and related tools. SMEDA plans to conduct 560 financial literacy training sessions nationwide, of which around 100 have already been completed, alongside five SME Financing Help Desk sessions held with partner banks over the past month.
What This Means for Applicants
For small business owners, farmers and prospective homeowners, these figures signal a genuine government push to widen access to formal credit over the next two years. However, officials themselves acknowledged that improving documentation and financial preparedness on the applicant side will be just as important as increasing bank lending limits. Anyone hoping to benefit from these schemes should start organizing their financial records and application documents now, since Finance Minister Aurangzeb specifically flagged the need for faster conversion of approvals into actual disbursements.
Conclusion
Between SME financing, agricultural credit and the Apna Ghar housing scheme, the government’s Access to Finance Plan 2026-2028 represents one of the more ambitious lending expansion efforts in recent years. With Rs. 2 trillion targets set across multiple sectors and detailed disbursement figures already being tracked, the coming months should show whether banks and government agencies can convert these targets into real financing reaching farmers, small businesses and homebuyers on the ground. The financing push also complements other government initiatives, including the new auto policy 2026-31, which introduces its own vehicle financing incentives, and Punjab’s plan to digitize housing society approvals for buyers using these loans.