Govt Launches Task Force to Help Small Businesses Get Bank Loans

The federal government has established a dedicated SME Finance Task Force to improve access to bank financing for small and medium enterprises (SMEs), as it seeks to increase private sector lending and support long-term economic growth.

Finance Minister Muhammad Aurangzeb announced the initiative while addressing the Pakistan Banking Summit 2026 in Karachi, describing greater access to finance for SMEs as “mission critical” for achieving sustainable economic growth. He said expanding lending to SMEs should become an industry-wide effort rather than the responsibility of only a few financial institutions.

The 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. It has been tasked with recommending practical measures to expand SME financing and improve access to credit across the banking sector.

The finance minister said the government also wants banks to increase financing for exporters, agriculture, manufacturing, construction, housing, and the information technology sector. He noted that the FY2026-27 budget includes allocations to support these priority sectors.

Highlighting the country’s economic performance, Aurangzeb said Pakistan ended the last fiscal year with a primary surplus, one of its lowest fiscal deficits in recent years, stronger debt indicators, a healthy current account, record remittances, higher foreign exchange reserves, and renewed access to international capital markets, including the country’s inaugural Panda Bond issuance.

He said the government remains committed to maintaining macroeconomic stability while advancing structural reforms, modernizing tax administration through technology, expanding credit guarantee schemes for SMEs and small farmers, and reducing reliance on bank borrowing by developing domestic capital markets.

Aurangzeb also highlighted the government’s broader financial sector reform agenda, including privatization, climate finance, digital assets, and financial innovation. He said the recently enacted Virtual Asset Act 2026 provides a regulatory framework for digital assets, while the government is also exploring innovative financing options such as the tokenization of sovereign debt.