Lack of access to capital for entrepreneurs

Pakistanis are some of the sharpest entrepreneurs in the world. Yet small and medium enterprises are largely locked out from access to debt and equity capital. In order to promote lending to the SME sector, I have recommended that the Planning Commission may work with the SBP to mandate that the loan books of all commercial banks must include a predefined minimum percentage of loans to borrowers categorised as SMEs. This will force the banking sector out of its comfort zone, force them to invest in technology and systems that allow them to manage and monitor lending to such clients in a profitable and sustained manner and increase access to finance for SMEs.

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