The federal government has established a dedicated SME Finance Task Force to improve access to bank financing for small and medium enterprises (SMEs), aiming to boost private sector lending and support long-term economic growth.
Finance Minister Muhammad Aurangzeb announced the initiative while addressing the Pakistan Banking Summit 2026 in Karachi. He described improved access to finance for SMEs as “mission critical” for sustainable economic growth and stressed that expanding SME lending should be a collective responsibility of the entire banking sector.
The task force will be headed by the State Bank of Pakistan (SBP) and include senior representatives from the Pakistan Banks’ Association (PBA), the Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce, and the Ministry of Finance. It has been assigned to recommend practical measures to expand SME financing and improve access to credit across Pakistan’s banking industry.
Aurangzeb said the government also expects banks to increase financing for key sectors, including exports, agriculture, manufacturing, construction, housing, and information technology. He noted that the FY2026–27 federal budget includes measures to support growth in these priority sectors.
Highlighting Pakistan’s recent economic performance, the finance minister said the country ended the previous fiscal year with a primary surplus, one of its lowest fiscal deficits in recent years, stronger debt indicators, a healthy current account balance, record remittances, higher foreign exchange reserves, and renewed access to international capital markets, including its inaugural Panda Bond issuance.
He reaffirmed the government’s commitment to maintaining macroeconomic stability while pursuing structural reforms, modernizing tax administration through technology, expanding credit guarantee schemes for SMEs and small farmers, and strengthening domestic capital markets to reduce reliance on bank borrowing.
Aurangzeb also outlined the government’s broader financial sector reform agenda, including privatization, climate finance, digital assets, and financial innovation. He said the recently enacted Virtual Asset Act 2026 establishes a regulatory framework for digital assets, while the government is also exploring innovative financing options such as the tokenization of sovereign debt.
