Small enterprises

Small and medium-sized enterprises (SMEs) play a vital role in the development of export markets in Pakistan. They contribute 35 percent and 33 percent to exports and GDP, respectively. Ninety-five percent of the country’s economy is constituted of SMEs. This sector is the backbone of the economy but the sector often gets ignored. The small and medium-sized business owners cannot expand their business due to lack of finance since most of commercial banks finance the corporate sector. Since 2008 commercial banks’ credit to SMEs has declined from 17 percent to 6 percent.

A large number of SMEs are now operating successfully through online trading. Still, there is a dire need that commercial banks finance such businesses and lend them money on low rates.

Shamsul Haq

Karachi