Novelty financial tools

As of October 2024, the outstanding credit card portfolio in Pakistan stood at Rs8.5 billion, according to the State Bank’s Credit/Loans report. This represents approximately one per cent of the industry’s total consumer financing portfolio. While the financial sector has traditionally prioritised the mass consumer segment, there is significant potential to broaden its focus. Expanding into the largely underserved corporate and small and medium enterprise (SME) segments for business credit cards could address their growing credit needs and unlock new opportunities for growth. With over 67pc of Pakistan’s bank financing directed toward the corporate sector, there is a significant untapped opportunity to introduce business credit cards. This product, which is a staple in the offerings of most Gulf Cooperation Council banks and even widely available in neighbouring India, remains notably absent in Pakistan. Leveraging this potential could cater to the financial needs of businesses and drive diversification within the banking sector.