Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today announced the establishment of a dedicated SME Finance Task Force to expand access to finance for small and medium enterprises (SMEs). Speaking at the Pakistan Banking Summit 2026 in Karachi, he called for an industry-wide effort to increase private sector lending and outlined the Government's broader agenda for banking sector reforms and sustainable economic growth.
The Task Force will be led by the State Bank of Pakistan (SBP) with senior representation from the Pakistan Banks' Association (PBA), Small and Medium Enterprises Development Authority (SMEDA), chambers of commerce and industry, and the Ministry of Finance. It will recommend practical measures to improve SME financing and broaden access to credit across the banking industry.
Emphasizing the banking sector's role in driving economic growth, Senator Muhammad Aurangzeb said that increased lending to SMEs, exporters, agriculture, manufacturing, construction, housing, and the information technology sector is a mission critical for achieving sustainable economic growth. He stressed that access to finance for SMEs must become an industry-wide effort rather than the responsibility of only a few institutions. He also mentioned the required budgetary allocations for these sector that has already been done in the Budget FY27.
Highlighting Pakistan's improving macroeconomic outlook, Senator Muhammad Aurangzeb noted that the economy had concluded the last fiscal year on a strong footing, supported by a primary surplus, the lowest fiscal deficit in recent years, improved debt indicators, sustained current account performance, record remittance inflows, growing foreign exchange reserves, and renewed access to international capital markets through successful sovereign debt issuances, including Pakistan's inaugural Panda Bond.
Senator Muhammad Aurangzeb said the Government remained committed to translating macroeconomic stability into sustainable, export-led growth through structural reforms and policy consistency. He noted that the Federal Budget FY27 had introduced significant taxation and financing measures to improve competitiveness, encourage investment, support exporters, agriculture and manufacturing, and provide relief to the salaried class. He further reaffirmed the Government's commitment to introducing a Medium-Term Tax Strategy to provide greater certainty and predictability for businesses.
The Finance Minister also highlighted the Government's efforts to modernize tax administration through a technology-driven operating model aimed at minimizing human intervention, enhancing transparency, and strengthening trust between taxpayers and the tax administration.
The Finance Minister reaffirmed the Government's commitment to expanding risk-sharing and partial credit guarantee schemes, particularly for SMEs and small farmers, while continuing targeted financing support for export-oriented sectors. He also emphasized the need to diversify Government borrowing through non-bank financing channels and deepen domestic debt capital markets to reduce reliance on the banking sector and create greater space for private sector lending.
Senator Muhammad Aurangzeb further highlighted the Government's broader financial sector reform agenda, including privatization, climate finance, digital assets, and financial innovation. He noted that the recently enacted Virtual Asset Act 2026 had established a modern regulatory framework for digital assets and said the Government was actively exploring innovative financing instruments, including the tokenization of sovereign debt. He also underscored the importance of strengthening cyber resilience as a shared national responsibility to support Pakistan's digital financial ecosystem.
Concluding his address, the Finance Minister reaffirmed the Government's commitment to working closely with the banking industry and all stakeholders to build a modern, inclusive, and resilient financial system capable of supporting investment, innovation, and sustainable economic growth.
