Karachi, October 29, 2026: The State Bank of Pakistan (SBP) has introduced a new financing framework aimed at improving access to credit for small enterprises and small farmers. Under the initiative, banks will be able to provide financing through eligible microfinance banks and other authorized financial institutions, helping extend formal credit facilities to underserved business owners and agricultural borrowers.
Under the framework, eligible small businesses may obtain financing of up to Rs5 million, while agricultural borrowers may access loans of up to Rs2 million through certain participating institutions. Lower financing limits apply when loans are provided through specific intermediary institutions. The partner institutions will be responsible for assessing applications, approving loans, monitoring their use and managing recovery.
The financing arrangement will also fall under the federal government’s applicable risk coverage schemes for small and medium enterprises and small farmers. The initiative is intended to expand access to formal finance, support business development and improve the availability of credit for agricultural activities. However, all financing remains subject to institutional eligibility requirements, lending conditions and risk assessment.
