RETAIL BANKING | Cesar Tordesillas, India

Pakistan's central bank wants more focus on SMEs

State Bank of Pakistan Governor Yaseen Anwar wants banks to prioritize SME banking and ensure the uninterrupted flow of finances to SMEs.


He noted that although many banks are trying to improve their market position in order to serve the sector more effectively, the current level of SME finance – as well as overall level of SMEs’ access to banking services – remains unsatisfactory.

 “The SME sector represents over 90% of all enterprises, employs 75% of the non-agricultural workforce and contributes 30% to national GDP,” he claimed. “Despite its significant contributions, it is severely constrained in access to financial resources crucial for its growth,” Anwar complained.

He advised banks to study international examples of successful SME banking models, including the retail-based model for Mass SME; relationship-based banking; advisory-based lending services; the segment-based model; and the supply-chain linked model.

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