Private Sector Lending Hits Rs. 1.1 Trillion as PM Pushes Loan Reforms

Prime Minister Muhammad Shehbaz Sharif has instructed the State Bank of Pakistan (SBP) to simplify loan procedures for small and medium enterprises (SMEs), startups, and small farmers, as private sector lending crossed Rs. 1.1 trillion by December 2025, signaling growing credit penetration in the economy.

Chairing a high-level review in Islamabad, the prime minister emphasized that easy access to credit is critical to modernize agriculture, promote entrepreneurship, and boost economic growth. He said, “SMEs are the backbone of developed economies, and Pakistan must prioritize their growth while providing youth with entrepreneurship training to create jobs.”

Officials highlighted that the number of private sector borrowers doubled since 2021–22, reaching over 303,000 borrowers by December 2025. Agricultural outreach is also expanding, with the number of farmers benefiting from loans expected to reach 3 million this year, up from 2.8 million last year. The government aims to support modern farming practices through targeted credit facilities.

The prime minister directed Special Assistant Haroon Akhtar and the SME Development Authority to visit all provinces, including Gilgit-Baltistan and Azad Jammu & Kashmir, to draft a comprehensive SME facilitation policy. He also announced the formation of a subcommittee to further simplify financing procedures and pledged to personally monitor loan disbursement progress.