Outstanding SME loans hit Rs1.137tr

Dawn reported that on Wednesday the government said housing, SMEs, agriculture and electric vehicles, its four priority areas, drew about Rs222 billion in financing during July to September 2026-27. The statement came after the fifth meeting of the Access to Finance Steering Committee, where Finance Minister Muhammad Aurangzeb pointed to weak data as a barrier to decision-making. He argued that better information-sharing is needed so lenders can judge borrowers properly and expand lending based on cash flows.

Aurangzeb stressed that any data used should come with proper safeguards and clear purpose limits, while banks and other institutions still need access to what they require to assess borrowers. He also asked the committee to concentrate on implementation, measurable results and follow-up steps, and that headway on earlier decisions and advice from its sub-groups be tracked in a structured manner.

The meeting noted that SME lending balances expanded by Rs23 billion to Rs1.137 trillion during the first quarter of FY27, while borrower numbers grew by more than 25,000 to roughly 350,862. Aurangzeb wants a faster pace to match the government's medium-term goal of Rs2 trillion in SME financing and 775,000 borrowers by June 30, 2028, achieved through a wider network of lenders including commercial banks, microfinance institutions and other financial providers.