PM Shehbaz sets Rs2 trillion agriculture lending target by 2028

Prime Minister Shehbaz Sharif on Wednesday urged banks and financial institutions to expand lending to farmers, small and medium-sized enterprises (SMEs) and the housing sector, as the government set a target of Rs2 trillion in agricultural financing by June 2028, according to the Prime Minister’s Office (PMO).

According to the statement issued by PMO, PM Shehbaz made the remarks while chairing a review meeting on the Access to Finance Plan 2026-28 in Islamabad, where progress on financing for the agriculture, housing and SME sectors was reviewed.

“Banks and financial institutions should play their role in providing loans to farmers, SMEs and the housing sector,” the prime minister said.

He said the government would encourage banks that played a proactive role in providing loans.

“The agricultural sector is the backbone of the country’s economy, and working for its development is a national responsibility,” PM Shehbaz said.

Bank lending to the agricultural sector stood at Rs1.268 trillion in August 2026, according to the briefing at the meeting. The government has set a target of increasing agricultural lending to Rs2 trillion by June 2028 under the Access to Finance Plan.

The meeting was also told that 35,838 applications had been received through the Zarkhez-e app for loans, with Rs7.35 billion approved and Rs1.96 billion already disbursed.

PM Shehbaz also directed the authorities to ensure farmers had easy and uninterrupted access to financial resources on favourable terms.

On housing, the prime minister said, “Providing affordable housing for low- and middle-income groups is our priority,” PM Shehbaz Sharif said.

He directed the chief secretaries of the provinces to conduct a comprehensive survey of properties against which banks could provide loans to people seeking homes under the Prime Minister’s Apna Ghar Scheme.

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He was told that 147,504 applications had so far been received under the scheme, of which 53,127 had been approved. The total value of the approved applications stood at Rs313.42 billion, while loans worth Rs45.43 billion had been provided to 8,739 applicants.

A system was also being developed to identify plots across the country that met mortgage requirements, with Islamabad selected for the pilot project, officials said.

An effective mechanism would also be developed to involve leading house developers in the scheme and make it more integrated, the meeting was told.

Lending to the SME sector stood at Rs1.067 trillion by August 2026, with a target of Rs2 trillion set for the sector by June 2028 under the finance plan.

The Small and Medium Enterprises Development Authority (SMEDA) had also provided financial literacy training to 1,096 SMEs over the previous three months, the meeting was told.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Ahsan Khan Cheema, Rana Tanveer Hussain, Muhammad Aurangzeb and Riaz Hussain Pirzada, Minister of State Bilal Azhar Kayani, Prime Minister’s Adviser Haroon Akhtar Khan, State Bank Governor Jameel Ahmad, chief secretaries of the four provinces, Azad Jammu and Kashmir and Gilgit-Baltistan, IBRD Country Director Bolorma Amgaabazar, and presidents and chief executives of Pakistani banks.