SMEDA partners with global universities

The Small and Medium Enterprises Development Authority (SMEDA) has launched a major research initiative under its Research, Regulatory Insight & Advocacy Assistance (RRI&A) project, in collaboration with the Lahore School of Economics (LSE) and the University of Chicago. The study, titled "SME Finance and Lending in Pakistan," seeks to understand why Pakistani SMEs remain underrepresented in formal bank lending.

A statement released on Friday said the study will explore key issues such as managerial preferences, search frictions, and informal screening by loan officers. It also aims to assess how targeted application support and advocacy efforts can improve trust and interaction between SMEs and banks. To kick off the initiative, a survey has been launched to collect data from SMEs. Socrat Aman Rana, CEO of SMEDA, highlighted that the study aligns with SMEDA's mission to enhance SME access to finance—crucial for economic growth and global competitiveness.

Dr Hamna Ahmad, Associate Professor at LSE, noted the importance of applying academic expertise to real-world issues. She emphasised that bridging the academia-industry gap is key to building a sustainable economic foundation.

Emma Zhang, PhD Candidate at the University of Chicago Booth School of Business, added that the university's global perspective and research depth aim to shape evidence-based lending practices in Pakistan.