SME Finance Government launches task force to expand business lending in Pakistan

The State Bank-led body will recommend measures to improve SME access to bank credit and support private sector growth.

The government has announced the creation of a dedicated SME Finance Task Force to improve access to bank loans for small and medium enterprises (SMEs) and boost private sector lending across Pakistan.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb unveiled the initiative at the Pakistan Banking Summit 2026 in Karachi on Tuesday.

The State Bank of Pakistan (SBP) will lead the task force. It will also include representatives from the Pakistan Banks’ Association, SMEDA, business chambers and the Ministry of Finance.

The task force will recommend practical measures to expand SME financing and make credit more accessible through the banking system.

Speaking at the summit, Aurangzeb said Pakistan must increase financing for SMEs, exporters, agriculture, manufacturing, construction, housing and the information technology sector to achieve sustainable economic growth.

He added that banks across the industry should prioritise SME lending instead of leaving the responsibility to only a handful of financial institutions.

Meanwhile, the finance minister highlighted several signs of economic improvement. He pointed to a stronger fiscal position, a lower budget deficit, a stable current account, higher remittances, rising foreign exchange reserves and renewed access to international capital markets.

Furthermore, Aurangzeb said the government wants to transform macroeconomic stability into long-term, export-led growth through structural reforms and consistent economic policies.

He noted that the FY2026-27 Federal Budget includes measures to improve business competitiveness, attract investment and strengthen exports, agriculture and manufacturing.

In addition, Aurangzeb said the government is modernising the tax system through digital technology to improve transparency, reduce manual processes and strengthen trust between taxpayers and authorities.

He also called for expanding risk-sharing mechanisms and credit guarantee programmes for SMEs and small farmers. At the same time, he urged greater support for export-oriented industries.

Moreover, the finance minister stressed the need to develop non-bank financing channels and deepen domestic debt markets. He said these measures would reduce pressure on commercial banks and create more capacity for private sector lending.

Aurangzeb also highlighted broader financial sector reforms, including privatisation, climate finance, digital assets and financial innovation.

He said the recently introduced Virtual Asset Act 2026 provides a regulatory framework for digital assets. The government is also exploring new financing tools, including the tokenisation of sovereign debt.

Finally, Aurangzeb emphasised the importance of strengthening cybersecurity to support Pakistan’s expanding digital financial ecosystem. He reaffirmed the government’s commitment to working with banks and industry stakeholders to build a modern, inclusive and resilient financial sector.