SBP introduces wholesale financing framework for SEs, SFs

The State Bank of Pakistan announced on October 29, 2026, a lending model that lets banks finance small enterprises and farmers through microfinance banks and other eligible non-bank institutions. The federal government’s risk-coverage schemes will apply to qualifying loans, while banks can record them in their own books or use a wholesale arrangement.

Partner institutions will manage tasks such as loan assessment, approval, recovery and reporting, with data shared digitally with participating banks. Per-borrower limits vary by institution: NBMFCs can originate up to Rs1.0mn for an enterprise and Rs0.5mn for a farmer, while NBFCs and MFBs can lend up to Rs5.0mn and Rs2.0mn respectively.

The SBP requires regular portfolio oversight and says banks must halt new wholesale disbursements if an agent institution’s non-performing loans reach 10%. The framework also sets standards for agent institutions, including a maximum 5% NPL ratio for SME and agriculture lending and two years of unqualified audited accounts.