Agriculture remains the backbone of Pakistan’s economy and provides livelihoods to millions of households. Yet farmers, particularly small landholders, frequently struggle to obtain formal financing because of complicated procedures, collateral requirements and limited access to banking services. The PM’s direction to ensure uninterrupted financial resources for farmers on easy terms is therefore both timely and necessary. PM Shehbaz Sharif’s call for banks and financial institutions to expand lending to farmers, small and medium-sized enterprises (SMEs), and the housing sector comes at a time when access to affordable credit remains one of Pakistan’s biggest economic challenges. The banking sector has the resources to support economic activity, but the real question is whether those resources are reaching the people and businesses that need them most.

Credit for agriculture should not merely be measured by the amount of money disbursed. The terms of financing, speed of approval and accessibility at the grassroots level are equally important. Farmers need loans when they need them before sowing seasons and at critical stages of production not months after their immediate requirements have passed. A more responsive agricultural financing system could help farmers invest in modern machinery, quality seeds, irrigation and other inputs while reducing dependence on informal lenders.

The same principle applies to SMEs, which are among the most important engines of employment and entrepreneurship. According to the meeting, bank lending to the SME sector stood at Rs1.067 trillion in August, while the Access to Finance Plan 2026–28 has set a target of Rs2 trillion by June 2028. The target is ambitious, but reaching it will require more than directives. Banks must be encouraged to develop practical lending products tailored to the realities of small businesses, many of which lack the documentation and collateral demanded by conventional lending models.

Housing presents another major test. Pakistan’s growing population and rising construction costs have made home ownership increasingly difficult for low- and middle-income families. The Prime Minister’s Apna Ghar Scheme has attracted 147,504 applications, with 53,127 approved. Loans worth Rs45.43 billion have so far been disbursed to 8,739 applicants, while approved applications represent financing of Rs313.42 billion.

These figures indicate significant demand for affordable housing finance, but they also highlight the gap between applications, approvals and actual disbursement. The government must ensure that the process does not become trapped in bureaucratic delays. The proposed system to identify plots that meet mortgage requirements, beginning with a pilot project in Islamabad, could help address one of the major obstacles to housing finance.

The broader objective should be to build a financial system that serves productive sectors rather than simply expanding balance sheets. Banks should be rewarded for taking responsible risks, supporting entrepreneurs, financing farmers and helping ordinary families build homes.