SME Financing in Pakistan Rises 33% to Rs943 Billion
SME financing in Pakistan reaches Rs943 billion in Q2 2026, according to SBP data.
Financing for small and medium-sized enterprises (SMEs) in Pakistan increased by 33% year-on-year, with outstanding loans reaching Rs943 billion in the second quarter of 2026, according to data released by the State Bank of Pakistan (SBP).
The government has set a financing target of Rs1.5 trillion to expand credit availability and meet the financial needs of small and medium-sized businesses. The target aims to improve access to loans and support business growth.
SME Loan Repayment Indicators Improve
Alongside the rise in financing, the SME sector’s infection ratio declined significantly. SBP data shows that the ratio fell from 23% to 11.7%. This measure indicates the proportion of loans classified as non-performing.
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However, the outstanding volume of non-performing SME loans remained between Rs80 billion and Rs125 billion, according to the report. Therefore, continued attention to credit quality remains important as lending expands.
Easier Credit Could Support Business Growth
Greater access to SME financing could help businesses invest, expand operations and create employment opportunities. Small and medium-sized enterprises also need suitable loan terms and accessible financial services to meet their funding requirements.
Achieving the Rs1.5 trillion target will depend on the availability of credit and the ability of businesses to obtain financing on workable terms. Meanwhile, monitoring loan repayment performance will remain important to maintaining the quality of SME lending.
