ISLAMABAD: Prime Minister Shehbaz Sharif was informed on Tuesday about a new scoring mechanism designed to evaluate banks' performance, monitor lending target achievements, and encourage financial institutions to increase credit for businesses. The mechanism was discussed during a high-level meeting focused on improving financial access for the business sector, particularly small and medium-sized enterprises (SMEs).
According to Union of Small and Medium Enterprises, the proposed bank scoring system will assess financial institutions' contributions to expanding credit facilities for SMEs and other priority sectors. This system aims to provide a clearer evaluation of banks' roles in supporting businesses. The prime minister approved a comprehensive framework to accelerate financing availability for entrepreneurs and enhance access to credit.
The briefing revealed plans for a significant increase in SME financing by banks, targeting Rs2 trillion by June 2028, up from Rs1.15 trillion in June 2026. The government also aims to raise the number of SME borrowers from 324,000 to 775,000 and increase the share of SME financing in total bank lending from 9.9 percent to 13 percent by the same year.
Prime Minister Sharif emphasized the importance of affordable and accessible financing for sustainable economic growth. He highlighted that improved credit availability would stimulate investment, expand production capacity, create jobs, and boost exports. Authorities were directed to ensure faster credit access for businesses, especially SMEs, as they play a crucial role in strengthening the national economy and require stronger financial support.
To incentivize banks, the prime minister announced annual awards for those providing the highest levels of financing to businesses, particularly SMEs. The meeting also approved a three-tier governance structure to advance the Access to Finance (A2F) initiative, with the prime minister chairing a high-level committee overseeing financial access improvements.
The framework includes a steering committee led by Finance Minister Muhammad Aurangzeb and co-chaired by State Bank of Pakistan Governor Jameel Ahmad. Sector-specific subcommittees will be established for SMEs, agriculture, information technology, renewable energy, and housing finance to address individual sector financing needs.
The government stated that these measures aim to strengthen private-sector growth, accelerate economic activity, and create employment opportunities through improved access to finance. The meeting was attended by several key officials, including Finance Minister Aurangzeb, Economic Affairs Minister Ahad Cheema, Minister of State Bilal Kayani, Special Assistant to the Prime Minister Haroon Akhtar, SBP Governor Jameel Ahmad, and Pakistan Banks' Association Chairman Zafar Masud.