LAHORE: Banks approved financing of Rs521 billion within six to seven months under the government’s housing finance scheme revised in March this year. However, before revision, the housing finance remained at Rs251 billion.

“The government’s housing finance scheme was revised in March 2026. Before the revision, banks’ outstanding housing finance stood at Rs251 billion. Under the revised scheme, banks approved financing of Rs521 billion for around 80,000 applicants within six to seven months,” State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed while speaking here at the Lahore Chamber of Commerce & Industry on Friday.

The central bank’s chief said that a significant increase in financing for small and medium enterprises (SMEs) is among the government’s key economic priorities, while agriculture, housing and exports are also receiving special attention.

He told the business community that the limit for SME loans without collateral had been increased from Rs10 million to Rs50 million. “The definition of SMEs had also been revised.

The annual turnover limit for small Rs400 million,” he explained.

Sharing SME financing figures,the governor said that outstanding SME financing had increased from Rs491 billion in June 2024 to Rs691 billion in June 2025 and approximately Rs1,110 billion (1.110 trillion) in June 2026. The number of SME borrowers had also risen from 177,000 in June 2024 to 275,000 in June 2025 and around 325,000 in June 2026, he maintained.

Speaking on the occasion, the LCCI President Ali Hussam Asghar said a joint financing mechanism involving industry, the government, EXIM Bank and commercial banks could help accelerate SME growth. He proposed selecting 1,000 SMEs on the basis of available data, identifying the obstacles they faced in accessing finance and developing a practical facilitation model. If successful, the model could be replicated across the country.

Published in Dawn, October 31st, 2026