What happened
The International Finance Corporation (IFC) announced on 10 February 2026 a risk-sharing facility with Habib Metropolitan Bank Limited (HABIBMETRO) to expand access to finance for small and medium enterprises (SMEs) across Pakistan, including agricultural SMEs, the Associated Press of Pakistan reported.
According to the release, IFC’s unfunded risk amount under the facility will be up to $40 million, in Pakistani rupee equivalent. IFC’s risk share will cover up to 50 per cent of principal losses on a portfolio of SME loans, including agricultural SMEs, of up to $80 million to be originated by HABIBMETRO in Pakistan.
The facility has a tenor of up to six years and is processed under IFC’s Small Loan Guarantee Programme. It is supported by a pooled first-loss guarantee from the International Development Association’s Private Sector Window blended finance facility.
Momina Aijazuddin, IFC regional industry director for financial institutions, said unlocking private capital at scale was essential to close Pakistan’s SME financing gap and that the targeted risk-sharing would expand credit for SMEs and agri-centric businesses.
Khurram Shahzad Khan, president and chief executive of HABIBMETRO, said the bank was working to improve access to finance for SMEs, which he described as the backbone of Pakistan’s economy, and that the partnership would help broaden and diversify its SME portfolio across regions and sectors.
Why it matters
Citing a World Bank release, the report said SMEs account for 90 per cent of businesses in Pakistan and contribute 40 per cent of the country’s gross domestic product, yet fewer than 200,000 of about 3.2 million SMEs have access to formal credit.
The partnership is expected to help HABIBMETRO scale up its SME loan portfolio in line with its medium-term growth strategy. Officials said that by demonstrating sustainable and commercially viable SME lending models, the facility could shift financing toward productive sectors and inform broader market practices.
What is still uncertain
The announcement set out the size, tenor and risk-sharing structure of the facility but did not specify a timetable for disbursement, the expected number of borrowing firms, or the sectors and provinces that would receive loans first.
Sources & reporting notes
This article summarises published reporting, not eyewitness coverage. Sources were reviewed on 10 February 2026.
- Associated Press of Pakistan — "IFC, Habib Metro launch risk-sharing facility to boost SME financing"10 February 2026 · Reports the facility's $40 million risk amount, the $80 million loan portfolio, the six-year tenor and comments from IFC and HABIBMETRO officials.
