Aurangzeb urges microfinance sector to shift to cashflow-based lending

Finance Minister Muhammad Aurangzeb has called on the microfinance sector to move toward lending based on cash flows instead of relying mainly on collateral. He addressed the 10th Annual Microfinance Conference in Karachi by video link, an event run by the Pakistan Microfinance Network, and encouraged wider use of alternative data and digital credit scoring. According to Business Recorder, he wants institutions to bring new borrowers into the system, especially in agriculture and small business, rather than judging success by loan volumes alone.

He also said the government has raised the export refinance limit to Rs1.5 trillion from Rs1 trillion, earmarking 20% of the facility for small and medium-sized enterprises. He cited record foreign exchange reserves of $21.4 billion, roughly three months of import cover, and put growth for the current fiscal year at more than 4%.

Aurangzeb said the government will keep pursuing structural changes in tax, energy, state firms, privatisation and public finance. He pointed out that the country's sovereign rating has been upgraded three times since April 2025. He stressed that future growth should be sustainable rather than driven by consumption, and that recent stability must be made lasting.