Prime Minister Shehbaz Sharif has directed the Ministry of Finance and the State Bank of Pakistan (SBP) to withhold concessions from banks that fail to provide timely loans under the Apna Ghar scheme, as well as to farmers and small businesses. He emphasised that expanding access to housing finance, agriculture and small and medium enterprises (SMEs) remains a key government priority for promoting economic growth and employment.
The directives were issued on November 2, 2026, during a meeting in Islamabad focused on financing priority sectors. The prime minister instructed the finance ministry to address lending challenges faced by SMEs and the housing sector while acknowledging banks that are actively supporting these areas.
According to the meeting's briefing, banks had approved Rs511 billion in loans under the Apna Ghar programme for 86,899 applicants by October 23. However, only Rs91 billion had been disbursed to 15,584 borrowers, highlighting a significant gap between loan approvals and actual payments.
The country's overall housing finance reached Rs455 billion, benefiting 187,317 borrowers. Meanwhile, agricultural financing stood at Rs1,329 billion for approximately 3.5 million beneficiaries, while SME financing reached Rs1,148 billion, covering 342,458 entrepreneurs. The government has set a target of increasing lending to both agriculture and SMEs to Rs1,500 billion by the end of FY2027.
The SBP informed the meeting that it was working on regulatory reforms, risk-sharing arrangements between banks and the government, and digital facilities to improve access to financing. It has also introduced an SME Connect portal to help businesses apply for loans and monitor their applications. The prime minister further directed the SBP and the Federal Board of Revenue (FBR) to resolve tax-related challenges affecting SMEs and exporters.
Shehbaz Sharif said the Apna Ghar scheme could also stimulate industries associated with housing and construction, creating wider economic opportunities. Faster disbursement of approved loans could help families purchase homes while supporting builders, developers, construction workers and suppliers of building materials across the country.
