Dawn·4 min read·hard
Financing consumption through SMEs
A
Ammar H Khan
✦AI Summary
The article argues that Pakistan's SME financing policies are inadvertently fueling consumption rather than productive manufacturing growth. It suggests that credit is disproportionately flowing to trade and services instead of export-oriented manufacturing.
Trade and consumption-facing services recycle domestic demand; they do not build export earnings, productivity growth, or foreign exchange. An SME policy that channels financing toward that segment by default, because it is sector-blind, not because it is deliberate, is financing consumption growth and calling it SME development.
economybusiness
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