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Credit Flows to Pakistan’s Manufacturing SME Sector

Author

Listed:
  • 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)

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.

Suggested Citation

  • Imran Ahmad & Karim Alam, 2015. "Credit Flows to Pakistan’s Manufacturing SME Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 261-270, September.
    • Handle: RePEc:lje:journl:v:20:y:2015:i:sp:p:261-270
    as

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    References listed on IDEAS

    as
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    3. Thorsten Beck & Asli Demirgüç-Kunt & María Pería, 2011. "Bank Financing for SMEs: Evidence Across Countries and Bank Ownership Types," Journal of Financial Services Research, Springer;Western Finance Association, vol. 39(1), pages 35-54, April.
    4. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
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    More about this item

    Keywords

    Credit; manufacturing; small & medium enterprise (SME); Pakistan;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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