Finance minister calls for broader, deeper access-to-finance ecosystem

ISLAMABAD  –  Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the fifth meeting of the Access to Finance Steering Committee at the Finance Division to review progress on expanding access to finance across priority areas. The finance minister emphasized that the committee’s focus should increasingly remain on implementation, measurable outcomes and follow-up actions, with progress on decisions and recommendations of the sub-committees to be systematically tracked.

The committee reviewed progress on SME financing, noting an improvement in lending, with outstanding SME finance increasing by Rs 23 billion from Rs 1.114 trillion in June 2026 to over Rs 1.137 trillion by end-September 2026, while the number of borrowers rose by over 25,000 to approximately 350,862. The finance minister called for further acceleration to remain aligned with the government’s medium-term objective of expanding SME financing to Rs 2 trillion and increasing the number of borrowers to 775,000 by June 2028.

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The committee also reviewed measures to strengthen SME bankability and capacity building. The finance minister directed that the ongoing work of SMEDA, the State Bank of Pakistan and participating financial institutions should be closely aligned and consolidated into a clear action tracker covering workstreams, action owners, timelines and interdependencies. On agriculture finance, the committee noted that outstanding agriculture finance increased by Rs 94.7 billion from Rs1.26 trillion in June 2026 to over Rs 1.35 trillion by end-September 2026, with the number of borrowers rising by 196,303 to approximately 3.46 million. Under the Prime Minister’s Zarkhez-e-Asaan Zarai Qarza scheme, 5,563 uncollateralised loans amounting to Rs 2.1 billion have been disbursed to smallholder farmers. The committee discussed the need to strengthen financing across the agricultural value chain, with particular emphasis on livestock, fisheries and other underserved segments.

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The finance minister noted the significant potential of the livestock sector and emphasized the need to explore ways to strengthen financing for the sector through greater private-sector participation and appropriate risk-mitigation mechanisms. On housing finance, the committee reviewed progress, noting that outstanding housing finance increased by Rs 103 billion from Rs 323 billion in June 2026 to Rs 426 billion by end-September 2026, with the number of borrowers rising to 231,550. Under the Wazir-e-Azam Apna Ghar Program, Rs 76 billion have been disbursed to 13,214 borrowers, while approved loans of Rs 350 billion are awaiting disbursement.

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The committee also discussed the need to improve data availability and information-sharing to support responsible lending and better risk assessment. The committee reviewed progress under the Pakistan Accelerated Vehicle Electrification (PAVE) Scheme to transition two- and three-wheeler mobility through affordable financing terms, under which 17,262 applications amounting to Rs 2.54 billion have been approved, while 4,839 loans worth Rs 975 million had been disbursed by end-September and 2,725 electric vehicles delivered to customers. The finance minister emphasized the importance of ensuring that government-supported financing schemes remain commercially sound and appropriately targeted. Aurangzeb directed the relevant ministries, regulators, financial institutions and industry participants to work collectively on the identified priorities and ensure that agreed actions are implemented within defined timelines. He emphasized that the objective of the Access to Finance agenda was not merely to increase funding availability, but to build a broader and deeper ecosystem that sustains momentum and is capable of reaching SMEs, farmers, households and other underserved segments.

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The finance minister reiterated that achieving the government’s access to finance objectives would require an all-hands-on-deck approach, with commercial banks, microfinance institutions, non-bank financial institutions, regulators, development partners and the private sector working together to expand financing channels, strengthen borrower capacity and address market gaps.

Meanwhile, Senator Muhammad Aurangzeb chaired the second meeting of the Steering Committee on Power Sector Regulatory Regime at the Finance Division yesterday to review progress and advance reforms aimed at strengthening the regulatory framework of the power sector and promoting efficiency, investment, competition and greater private-sector participation.

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The committee received an update on the ongoing work on Pakistan’s power sector transformation and discussed the significant changes taking place in the industry, including growing solarisation and changing demand patterns. The finance minister noted that the evolving power sector landscape required a regulatory framework capable of responding to technological developments while supporting efficiency, investment, consumer interests and greater private-sector participation.

The committee discussed key structural and emerging challenges facing the sector. The discussion also focused on improving regulatory predictability, better targeting of subsidies and strengthening the overall investment climate to support a more efficient, competitive and financially sustainable power sector. The finance minister emphasized the need to develop a market structure that provides clearer incentives for efficiency and service quality, while creating greater space for competition, private-sector participation and investment.

The finance minister emphasized that the reform process should seek to improve financial sustainability, reduce inefficiencies and create an environment conducive to long-term private investment. The finance minister emphasized that the emerging regulatory framework should provide sufficient flexibility to accommodate technological change, including distributed generation, storage and electric mobility, while maintaining system reliability, encouraging efficient investment and creating opportunities for private-sector participation.

Senator Muhammad Aurangzeb emphasized that the reform process should be iterative, evidence-based and aligned with the broader objective of creating a financially sustainable, efficient and competitive power sector. He stressed the importance of maintaining stakeholder ownership while ensuring that the work progresses within clear timelines and leads to actionable recommendations.

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