Cash flow data could unlock SME financing

Mashreq Bank Pakistan has introduced NEO BIZ, a digital banking service aimed at helping small and medium-sized enterprises build financial records that lenders can assess. The Express Tribune reported that many Pakistani businesses lack formal registration or digital accounts, leaving banks reliant on collateral when evaluating loan applications.

Pakistan has about 7.14 million MSMEs, responsible for nearly 40% of GDP and 30% of exports, while SME financing was around Rs882 billion in December 2025. Digital records of sales, payments and collections could help lenders evaluate turnover and repayment capacity, but banks would still need to consider profitability, liabilities and business risks. The service’s planned features include cash-flow-based lending, tax support and supply-chain services; their effect will depend on implementation and banks’ lending policies.