In a recent article in @Dawn_News , Nasir Jamal highlights how Pakistan’s largely informal economy estimated at nearly 59 percent of GDP continues to limit productivity, tax collection, and access to formal credit.
Drawing on insights from Mir Nejib Rahman, Secretary General at PBA, the piece explains that undocumented economic activity makes it difficult for banks to assess risk. As he notes, “with a majority of economic activity taking place outside formal documentation channels, lenders face significant challenges in verifying borrower credentials, assessing repayment capacity and managing risk,” leaving agriculture and SMEs underserved despite their growth potential.
It also highlights ongoing efforts such as digital banking expansion, data-sharing frameworks, and targeted lending initiatives aimed at improving documentation and financial inclusion, though significant structural challenges remain.
Read the full article here: dawn.com/news/1984537
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