Credit Flows to Pakistan’s Manufacturing SME Sector

Imran Ahmad () and Karim Alam ()
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Imran Ahmad: Additional Director, Infrastructure, Housing and SME Finance Department, State Bank of Pakistan
Karim Alam: Deputy Director, Infrastructure, Housing and SME Finance Department, State Bank of Pakistan

Lahore Journal of Economics, 2015, vol. 20, issue Special Edition, 261-270

Abstract: This paper profiles the flow of credit to manufacturing SMEs and their subsectors in Pakistan. We discuss the challenges confronting the SME sector as well as the role of the central bank in this context. Based on the literature and data available, we find that the flow of financing to the manufacturing sector witnessed a gradual and steady increase in absolute terms, although its share of total industry credit declined sharply over a nine-year period. Financing to manufacturing SMEs initially declined and then increased over a period of six years.

Keywords: Credit; manufacturing; small & medium enterprise (SME); Pakistan (search for similar items in EconPapers)
JEL-codes: E51 L60 (search for similar items in EconPapers)
Date: 2015
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