Outstanding SME Loans Surge to Rs1.137 Trillion Amid Financing Push

ISLAMABAD: The government reported a significant increase in outstanding loans for small and medium enterprises (SMEs), which rose by Rs23 billion to reach Rs1.137 trillion during the first quarter of the fiscal year 2026-27. This announcement was made following the fifth meeting of the Access to Finance Steering Committee, highlighting the government’s commitment to enhancing financial support for key sectors.

Finance Minister Muhammad Aurangzeb emphasized the importance of improving data availability and information-sharing to facilitate responsible lending and effective risk assessment. He stated that financial institutions must have access to necessary data to evaluate borrowers adequately and expand cash-flow-based lending. The minister also underscored the need for data to be used with appropriate safeguards and clear limitations.

This increase in SME financing is part of a broader strategy to stimulate economic growth in priority sectors, including housing, agriculture, and electric vehicles. The government’s focus on these areas aims to bolster job creation and enhance the overall economic landscape, which has faced challenges in recent years.

Looking ahead, the committee plans to concentrate on implementation and measurable outcomes, ensuring that progress on decisions and recommendations is systematically tracked. Future meetings will likely address ongoing challenges and explore additional measures to support SMEs and other critical sectors.