The State Bank of Pakistan hosted the 25th Zahid Husain Memorial Lecture in Karachi, with University of Chicago economist Professor Amir Sufi discussing how financial systems need to adapt as economies shift toward high-tech, services-led growth. In opening remarks, Deputy Governor Saleemullah linked sustainable growth and inclusion to deploying more capital to the real economy and expanding access for small and medium-sized enterprises, youth, and women. Professor Sufi argued that intangible-capital-intensive sectors such as Information Technology and Professional Scientific Services are difficult to finance through traditional bank models that depend on physical collateral and liquidation values, and called for more cash flow-based lending and external equity financing such as venture capital and private equity. He also highlighted the need for an enabling environment including bankruptcy processes that preserve business value and stronger contract enforcement for complex equity arrangements. The Deputy Governor pointed to the central bank’s risk coverage facility for SME and agri finance, the Banking on Equality policy, and the Regulatory Sandbox for fintech, alongside digital infrastructure initiatives including e-KYC and faster payment systems.
State Bank of Pakistan 2025-12-22
State Bank of Pakistan hosts Zahid Husain Memorial Lecture focused on financing intangible capital and cash flow-based lending
At the 25th Zahid Husain Memorial Lecture hosted by the State Bank of Pakistan, Professor Amir Sufi emphasized adapting financial systems to high-tech, services-led growth. He advocated cash flow-based lending and external equity financing, highlighting challenges in financing intangible-capital-intensive sectors. Deputy Governor Saleemullah underscored initiatives like the risk coverage facility for SMEs, the Banking on Equality policy, and digital infrastructure advancements.