Aurangzeb announces SME Finance Task Force to expand credit access, calls it’Industry-Wide Priority’

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday announced the formation of a dedicated SME Finance Task Force to expand access to credit for small and medium enterprises, declaring that "lending to SMEs can no longer remain a limited initiative of a few banks but must become an industry-wide priority."

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday announced the formation of a dedicated SME Finance Task Force to expand access to credit for small and medium enterprises, declaring that “lending to SMEs can no longer remain a limited initiative of a few banks but must become an industry-wide priority.” Addressing the second Pakistan Banking Summit 2026 in Karachi, Aurangzeb said the State Bank of Pakistan would lead the task force, which would include representatives from the Pakistan Banks Association, Smeda, chambers of commerce, and the Ministry of Finance.

“We cannot have SMEs not getting access to finance going forward. It’s as simple as that,” the minister emphasized, calling for moving beyond “lip service” and making SME financing a collective responsibility across the banking sector. He underscored that the banking industry remains “absolutely critical” in Pakistan’s journey from economic stabilisation to sustainable, investment-led growth, urging banks to significantly increase lending to priority sectors including SMEs, exporters, agriculture, manufacturing, construction, and IT.

Aurangzeb revealed that a constructive meeting was held with bank CEOs the previous day in the presence of the SBP governor, during which the need for broader access to SME credit was discussed at length. He welcomed the continued scaling up of risk-sharing and partial guarantee schemes, particularly for SMEs and small farmers, to mobilise private capital. The finance minister painted an encouraging picture of economic performance in the last fiscal year, highlighting an all-time low fiscal deficit, a debt-to-GDP ratio well below 70%, and GDP growth hitting 3.7% on the back of a strong rebound in large-scale manufacturing. Current account performance remained robust, supported by record remittance inflows, with remittances expected to close between $41 billion and $42 billion for the year.

On privatisation, Aurangzeb noted that PIA had been transferred to private hands, roadshows for three DISCOs had been completed, and more entities were in the pipeline. He also called for greater alignment with the State Bank’s Green Taxonomy to accelerate financing for renewable energy, water management, and climate-smart agriculture. The summit was inaugurated by Zafar Masud, Chairman PBA, who stressed collaboration for priority-sector financing and digital transformation, with keynote addresses delivered by senior officials from the SBP, Citi, the IFC, and Mastercard.