Small and Medium Enterprises (SMEs) are the unsung heroes of Pakistan’s economy. These businesses account for 72% of the non-agricultural workforce and contribute 40% to the country’s GDP. Yet, despite their importance, many SMEs still rely on outdated financial systems and cash-based transactions that stifle their growth. According to a recent report by Visa, titled Digitizing SME B2B Payments, while these businesses are critical to Pakistan’s economic engine, they face significant barriers—primarily the inefficiency of cash transactions and limited access to financing.
However, digital transformation, particularly in B2B payments, is emerging as a game-changer for the sector. At the core of this transformation is the need for SMEs to shift from cash-based systems to digital payment solutions. The B2B transaction landscape in Pakistan is dominated by cash, with an astonishing 85% of B2B transactions still occurring in this manner.
Out of the total $255 billion in B2B transactions, SMEs account for $121 billion of this activity—yet a significant portion of that remains untapped by digital solutions. As Pakistan’s SMEs face challenges such as lack of formal financial histories and limited access to credit, digitizing these transactions is essential to unlocking their full economic potential.
This is where commercial cards come in. Commercial credit cards represent a high-potential solution to help SMEs digitalize their B2B payments. These cards allow businesses to manage cash flow more effectively, reduce financial inefficiencies, and build a credit history—all while providing value-added services such as real-time expense tracking, spend analysis, and cash flow management. Unlike consumer credit cards, which are often used by businesses despite regulatory restrictions, commercial cards are designed specifically for businesses, allowing them to separate personal and business expenses, adhere to financial regulations, and manage transactions more efficiently. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
