commercial banks
Coverage of commercial banks in the Nexus archive.
- PM Shehbaz calls for comprehensive strategy to boost SMEs’ access to financing
Prime Minister Shehbaz Sharif directed the formulation of a comprehensive strategy to enhance small and medium-sized enterprises' (SMEs) access to financing, emphasizing collaboration with the State Bank of Pakistan and commercial banks. He also highlighted support for farmers processing agricultural produce, dedicated financial products for SMEs, and assistance for young and women entrepreneurs.
- Cutting out the middleman
Pakistan's federal government relies heavily on commercial banks for domestic debt, with banks holding 79% of marketable instruments worth Rs46.6 trillion. This concentration harms credit activity, with banks' advances-to-deposits ratio below 40% and SME loans at 10% of private-sector loans. A shift to retail investors could save Rs80 billion annually by reducing borrowing costs.