Pakistan SME lending grows 33 percent to reach Rs 943 billion

Lending to small and medium enterprises (SMEs) in Pakistan increased by 33 percent year-on-year to reach Rs 943 billion as of June 2026. Total bank lending expanded by 14 percent during the same period.
The State Bank of Pakistan intends to expand SME financing to Rs 1.5 trillion by June 2027. Prime Minister Shehbaz Sharif urged for accelerated SME financing to improve the country's export capacity.
The SME infection ratio dropped to 11.7 percent in the April-June 2026 quarter, down from a peak of 23 percent in the July-September 2024 quarter. Non-performing loans (NPLs) for SMEs have remained between Rs 80 billion and Rs 125 billion.
The Securities and Exchange Commission of Pakistan (SECP) proposed increasing the limit on micro and SME loans last month. AHL suggested that SME-related bad loans might increase as recently issued loans reach maturity.
























































