Role of Financial Inclusion in Enhancing SME Growth in Pakistan’s Textile Sector

Abstract

Small and Medium Enterprises (SMEs) are on the middle of our fabric region in Pakistan and that they play a important position in task creation, export technology and business fee addition in Pakistan. However, economic exclusion nonetheless represents one of the predominant boundaries that restriction SME's competitiveness, innovation and long-time period boom. This studies examines economic inclusion function for enhancing overall performance of SMEs in texture enterprise in Pakistan. Drawing on the prevailing empirical literature and sectoral reports, the paper underscores the position of higher get right of entry to to monetary services (i.e. availability of credit score, virtual banking, microfinance tools, cell banking, etc.) in stimulating productivity, technological upgrading, marketplace enlargement and resilience towards outside shocks. The findings spotlight the two-fold effect of higher monetary inclusion - it now no longer most effective narrows financing gaps, however more monetary inclusion additionally establishes a pointier deliver chain participation primarily based totally on enterprise-precise and particular export dimension. The take a look at requires coverage modifications and centered credit score packages in addition to novel fintech answers to decorate sustainable SME increase withinside the Pakistani textiles landscape.