SME financing doubles to Rs1.2tr in 2 years

Pakistan’s banks have lifted lending to small and medium enterprises to Rs1.2 trillion from about Rs490 billion in two years, while SME borrowers rose from 200,000 to 350,000. Pakistan Banks Association Chairman Zafar Masud shared the figures during a Karachi Press Club visit, The Express Tribune reported.

Masud said agricultural borrowers had reached 3.4 million, against 2.7 million previously, and cited a State Bank of Pakistan goal of 5.8 million by 2028. He also reported housing finance approvals of Rs455 billion, restructuring of Rs1.3 trillion in energy-sector loans, and continued 4% exporter financing, which banks support at an estimated annual cost of Rs100 billion.

Banks are also set to spend about Rs100 billion each year to keep overseas remittance transfers free after government incentives ended on July 1, 2026. Masud said the industry had additionally reworked around Rs300 billion of PIA debt as part of the airline’s privatisation process.