Ateeq Ur Rehman Welcomes Push for Greater Lending to Agriculture, SMEs and Housing

Economic and financial analyst Ateeq Ur Rehman has welcomed Prime Minister Shehbaz Sharif’s direction to financial institutions and banks to expand lending for agriculture, small and medium-sized enterprises (SMEs) and the housing sector.

He said wider access to affordable finance could support economic growth, strengthen productive sectors and improve financial inclusion across the country.

Agriculture Needs Easier Access to Finance

Ateeq Ur Rehman said agriculture remains a backbone of Pakistan’s economy and development. Farmers and peasants need continuous access to financing on affordable and transparent terms.

He cited the latest cotton crop as a positive example. According to him, favorable weather and support from authorities helped cotton arrivals rise by 27% to nearly 1.7 million bales by August 31, 2026.

The increase has also improved crop quality and reduced reliance on cotton imports, he said.

Housing Finance Can Support Families

The analyst also welcomed efforts to expand affordable housing finance, particularly for low- and middle-income households.

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He said easier access to formal housing finance could help families move from inadequate or informal housing into safer homes. Greater home ownership could also reduce the long-term burden of rising rental costs.

A home, he added, can become a long-term family asset while improving household financial security.

SMEs Need Better Credit Access

Ateeq Ur Rehman said SMEs play a major role in Pakistan’s economy. They include vendors, shopkeepers, traders, importers, exporters and intermediaries.

However, he noted that small businesses have long faced limited access to credit and high borrowing costs. Lengthy registration, licensing and compliance procedures have also created additional difficulties for businesses.

He welcomed the government’s Access to Finance Plan 2026-28, under which SME lending is expected to rise from Rs1.067 trillion to Rs2 trillion by June 2028.

Industry Needs Targeted Financial Support

Ateeq Ur Rehman also called for intelligent policies and measurable targets to revive struggling industries and strengthen Pakistan’s manufacturing base.

He identified high policy rates, energy tariffs, petroleum prices, dependence on imported raw materials and chemicals, rising shipping costs and expensive credit as major challenges for industrial productivity.

He said financial institutions, banks and upcoming digital banks should provide easier financing for productive and manufacturing activities.

“Pakistan cannot continue with shrinking industries, large trade deficits and persistent balance of payments pressures,” he said.

Call for Stronger Mortgage Financing

The analyst also urged the government and financial institutions to give serious consideration to mortgage financing.

He said Pakistan needs secure long-term funding sources and attractive financing rates for individuals and households. Such financing, he added, could support both housing development and broader economic activity.

Ateeq Ur Rehman stressed that targeted financial support for agriculture, SMEs, industry and housing could help strengthen economic growth and improve financial security for households and businesses.