The commercial banks are reluctant to shore up financing to the Small and Medium Enterprises (SMEs), as financing showed negative growth of 0.37% in the second quarter of 2015 despite continuous reduction in policy rates by the central bank.

Out of 35 banks, 17 private banks, including a small section of public sector and Islamic banks, a foreign bank and few DFIs, are active in financing SMEs sector. Despite significantly contributing to the GDP, exports and employment generation, the financing percentage of SMEs remain pathetic in the overall financing to customers of various levels.