Outstanding financing to small and medium enterprises (SMEs) in Pakistan reached an estimated Rs 854 billion in March 2026. That is up from Rs 584 billion, according to the Pakistan Credit Rating Agency (PACRA).
The figures appear in a PACRA rating note dated September 25, 2026. The note is about Parwaaz Financial Services Limited (PFSL), a lender to small businesses. PACRA did not state the date of the earlier Rs 584 billion figure.
Rs854 billion is a market-wide estimate. Parwaaz’s own loan book is about Rs3.49 billion, so the figure does not describe one lender.
Simple maths puts 312,000 borrowers at about 4% of 7.14 million SMEs. PACRA does not make this comparison. The two numbers may also count different things.
Who Is Parwaaz?
Parwaaz is a wholly owned subsidiary of Karandaaz Pakistan, a not-for-profit company. Karandaaz works with support from the UK’s Foreign, Commonwealth and Development Office and the Bill and Melinda Gates Foundation.
PFSL was set up in December 2020 and holds a licence as a non-banking finance company. It lends to agriculture and industrial value chains, renewable energy, healthcare and education.
Its products include digital lending, invoice discounting and warehouse receipt financing. In March 2025, it issued what PACRA calls Pakistan’s first rupee-denominated Green Action Bond.
Its funding today has three parts:
- Equity of about Rs 1.7 billion
- A Rs 1.5 billion concessional loan from Karandaaz
- A Rs 1 billion Green Action Bond
PACRA says the company’s asset quality remains sound.
Rating Stays Unchanged
PACRA kept PFSL’s long-term rating at A+ and short-term rating at A1. The outlook is stable. All three match the ratings from September 26, 2025.
PACRA says the ratings depend on Parwaaz carrying out its growth plan and keeping profits stable. They also depend on sound risk management and a healthy loan book. PACRA also lists conversion of a subordinated loan into equity.
PFSL plans to raise more funds from other sources. PACRA gave no details.
What Is Not Confirmed
- Who produced the Rs854 billion estimate. PACRA says only “according to estimates.”
- The date of the Rs584 billion starting figure.
- Which lenders are counted, such as banks, NBFCs or others.
- The amount, source and timeline of PFSL’s extra fundraising.
