{
  "id": 12597726,
  "title": "Aurangzeb urges microfinance sector to shift to cashflow-based lending",
  "url": "https://urgent.news/2026/10/07/aurangzeb-urges-microfinance-sector-to-shift-to-cashflow-based-lending",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T09:43:10.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443087/aurangzeb-urges-microfinance-sector-to-shift-to-cashflow-based-lending"
  },
  "original_language": "en",
  "account": "Finance Minister Muhammad Aurangzeb called for the microfinance sector to transition to cashflow-based lending and adopt alternative data and digital credit scoring methods. Speaking at the 10th Annual Microfinance Conference in Karachi, Aurangzeb emphasized the importance of expanding access to finance for small businesses and farmers by moving away from an over-reliance on collateral. The minister urged microfinance institutions to prioritize enrolling new borrowers, particularly in agriculture and small businesses, instead of solely focusing on lending volumes. Aurangzeb also announced an increase in the export refinance limit to Rs1.5 trillion, with 20% of the facility designated for small and medium-sized enterprises. Pakistan's foreign exchange reserves have reached a record $21.4 billion, providing three months of import cover, and the economy is projected to grow by over 4% in the current fiscal year. The government plans to pursue structural reforms in taxation, energy, state-owned enterprises, privatization, and public finances, while striving to make the recent macroeconomic stability permanent and avoid a return to boom-and-bust cycles. Aurangzeb highlighted that Pakistan has experienced significant progress towards economic stability over the past two and a half years, with the country's sovereign credit rating improving three times since April 2025. The finance minister stressed the need to transition towards sustainable and responsible economic growth rather than consumption-driven expansion in the upcoming phase. The government is committed to further increasing the private sector's role in economic activity.",
  "summary": "Finance Minister Muhammad Aurangzeb on Wednesday urged the microfinance sector to shift towards cashflow-based lending and make greater use of alternative data and digital credit scoring to expand access to finance for small businesses and farmers. “Within the context of microfinance as well, we need to move towards cashflow-based lending, rather than always focused on collateral,” said…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}