Govt to Make Bank Loans Cheaper

The federal government has accelerated the implementation of Prime Minister’s Access to Finance Plan 2026-28, with a renewed focus on expanding affordable financing for SMEs, agriculture, IT, exporters, renewable energy, and housing through stronger oversight and faster execution.

Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired the first meeting of the newly established Access to Finance Steering Committee, which will oversee the implementation of the national financing plan and coordinate reforms across key institutions.

The committee reviewed the proposed governance framework, implementation workstreams, and performance targets aimed at expanding financial inclusion, increasing affordable credit, and improving access to financing for priority sectors.

Members also reviewed progress on the government’s flagship financing programmes, including Zarkhez-e (Asaan Zarai Qarza), the Apna Ghar Scheme, and the Pakistan Accelerated Vehicle Electrification (PAVE) initiative, which supports affordable financing for electric bikes and e-rickshaws. Discussions covered application trends, approvals, disbursements, and operational challenges.

A three-tier governance structure was proposed, comprising monthly progress updates to the Prime Minister, fortnightly strategic reviews by the Steering Committee, and weekly meetings of sector-specific sub-committees. The committee also discussed a reporting framework featuring Resolution Target Dates (RTDs), escalation mechanisms, and a performance monitoring dashboard to strengthen accountability.

Aurangzeb said the Steering Committee would serve as the central platform for strategic oversight, policy coordination, and progress monitoring, enabling timely decision-making and removing implementation bottlenecks. He stressed that the committee must remain focused on delivering measurable outcomes through close coordination among regulators, financial institutions, and implementing agencies.

The meeting also reviewed reforms aimed at expanding SME financing, including improved credit scoring, development of an Open Banking Framework, an SME Digital Portal, integration with credit bureaus, and measures to strengthen financing across key value chains.

The finance minister said the success of the Access to Finance Plan would depend on disciplined execution, clear accountability, adherence to timelines, and stronger coordination among government institutions. He added that regular data-driven monitoring would be essential to sustain the reform agenda.

The meeting was attended by Finance Secretary Imdadullah Bosal, the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Chairman of the Pakistan Banks’ Association (PBA), the CEO of Karandaaz Pakistan, and senior officials from the Finance Division, SBP, and SECP.