PM instructs banks to increase and streamline credit processes.

Improved access to financing is a top government priority for economic growth and inclusion, according to Prime Minister Muhammad Shehbaz Sharif, who on Wednesday ordered the State Bank of Pakistan and commercial banks to further streamline and expand credit mechanisms for small and medium enterprises (SMEs), new businesses, and small farmers.

According to a news release from the Prime Minister’s Office, the prime minister made these comments while presiding over a meeting on loan facilitation for small farmers and SMEs in this area.

PM Shehbaz Sharif stressed that in order to encourage innovation in the agriculture sector, priority financing for service providers should be guaranteed. In order to increase production and competitiveness, he also directed that SMEs and small farmers have easier access to loans for new machinery and technology.

The prime minister instructed Haroon Akhtar, his Special Assistant on Industries and Production, and the SMEDA team to visit every province, including Azad Jammu and Kashmir and Gilgit-Baltistan, and collaborate closely with local administrations to develop a comprehensive, coordinated policy for facilitating SMEs.

SMEs are the foundation of economies and industries in industrialized nations, according to Prime Minister Shehbaz Sharif, who emphasized the necessity of replicating such models in Pakistan. To promote new business beginnings and boost economic activity, he also ordered that youth receive entrepreneurship training.

Additionally, the prime minister stated that he would personally chair the meeting and keep a close eye on developments in this field. In order to boost commercial activity and the nation’s economy, he declared that a subcommittee would be formed shortly to create practical proposals for further streamlining loan availability for the private sector, especially SMEs and agricultural.

The meeting was briefed by the officials on recent developments in private sector lending, such as loans for new technology, machinery, and business expansion. By December 2025, bank lending to the private sector had improved dramatically compared to 2021–2022, with the overall credit volume reaching Rs1.1 trillion and the number of borrowers doubling to over 303,000.

An estimated three million farmers received agricultural financing this year, up from 2.8 million the previous year, according to information presented at the meeting. While agricultural financing today includes crops, modern equipment, cattle, and fisheries, banks are giving priority to loans for new firms and contemporary technology.

The conference was told by SMEDA representatives that a program to improve SMEs’ financial understanding and literacy would shortly be launched. The State Bank’s totally digital “Zarkhez-e App,” which was introduced to help small farmers and is helping a lot of users, and Punjab’s program that lends money to service providers to buy new agricultural equipment were also explained to the participants.