Financial inclusion grows apace in Pakistan

ISLAMABAD: Efficient financial inclusion is most likely to improve the efficiency of small and medium enterprises (SMEs) and foster a better financial system. In order to create a stable financial system, developing countries have made financial inclusion a primary goal to promote economic progress. Financial inclusion places small companies in an environment where they may develop and integrate into a larger formal economy, reports WealthPK.
Talking to WealthPK, Sajjad Ahmed Warraich, head of Business Development and Marketing Division at the SME Bank, said, “Pakistan has adopted financial inclusion as a national priority. Financial inclusion has advanced significantly in recent years, greatly helping the society access financial services. It also enables entrepreneurs and SME owners to make use of the invaluable advising services offered by the financial institutions to assist them in raising money and expanding their companies.”
In turn, this enables them to make wiser business decisions, which promote economic success by fostering business growth and job creation, he said.
“Globally, SMEs and their success has a direct effect on the economic growth and development in both developing and developed economies. The development of SMEs is also one of the policy agendas of the Government of Pakistan and the State Bank in order to boost economic growth. The government’s initiatives offer programs that support growth and expansion of SMEs through access to cheap and affordable finance,” Sajjad said.
Sajjad further said, “financial inclusion enables financially excluded people to save money, invest in businesses, and extend their own enterprises, which helps lower poverty and boost a country’s economic growth.’’
“Through financial inclusiveness, financial institutions can now reach new customers with services in payments, savings, credit, and insurance which facilitate the SMEs, business owners and entrepreneurs to be in an ecosystem where they can flourish and integrate into a broader formal economy,” he told WealthPK.
“Digital innovations also play an important role in expanding financial inclusion by eliminating conventional barriers to inclusion, such as transaction costs and information asymmetries. These are especially helpful in the case of SMEs where people are more aware than ever before,” said Sajjad.
According to WealthPK, financial inclusion will increase economic inclusion, which will improve the living standard of people and the financial position of the financially excluded SMEs.