This policy brief explores barriers to financial access for food SMEs in Pakistan, highlighting the need for targeted financing mechanisms to support small businesses.
Key findings:
SMEs receive minimal financial support, with only 3.2% of SME financing reaching women-led businesses.
Lack of risk capital, rigid banking policies, and weak credit guarantees limit SME loans.
Formal banking structures prefer medium enterprises over small enterprises, restricting access to micro and small businesses.
Gender biases in lending prevent women-led SMEs from securing funds.
Recommendations include mandatory SME lending targets, expanded credit guarantee schemes, and improved financial literacy programs.
The report urges financial sector reforms to ensure better capital access for food SMEs.
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