The federal government has established a dedicated SME Finance Task Force to improve access to bank financing for small and medium enterprises (SMEs). The initiative is aimed at increasing private sector lending, supporting business growth, and strengthening Pakistan’s long-term economy. The announcement was made by Finance Minister Muhammad Aurangzeb during the Pakistan Banking Summit 2026 held in Karachi.
Addressing the summit, Aurangzeb described greater access to finance for SMEs as “mission critical” for achieving sustainable economic growth. He said expanding credit to small and medium businesses should become a shared responsibility across the entire banking sector instead of relying on only a few financial institutions. The government believes improved financing will help businesses expand operations, create jobs, and contribute to economic development.
The newly formed task force will be led by the State Bank of Pakistan (SBP) and include senior representatives from the Pakistan Banks’ Association (PBA), Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce, and the Ministry of Finance. The committee has been tasked with identifying practical measures to improve SME financing and increase access to credit throughout Pakistan’s banking system.
The finance minister also urged banks to expand financing for other key sectors, including exports, agriculture, manufacturing, construction, housing, and information technology. He said the federal budget for FY2026-27 includes allocations and policy support for these priority sectors to encourage investment, increase productivity, and generate employment across the country.
Highlighting Pakistan’s recent economic performance, Aurangzeb said the country ended the previous fiscal year with a primary budget 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 Pakistan’s first-ever Panda Bond issuance.
The finance minister reaffirmed the government’s commitment to maintaining macroeconomic stability while continuing structural reforms. He said the government will modernize tax administration through technology, expand credit guarantee schemes for SMEs and small farmers, reduce dependence on bank borrowing by developing domestic capital markets, and pursue financial sector reforms. These reforms include privatization, climate finance, digital assets, and financial innovation, supported by the recently enacted Virtual Asset Act 2026.
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