Despite Pakistan’s banking sector rapidly embracing digitalization, business owners still face significant challenges when trying to access corporate financial services, particularly corporate credit cards. While individual banking has become relatively streamlined, corporate credit facilities remain restricted and difficult to obtain.
The Securities and Exchange Commission of Pakistan has recently partnered with institutions like Askari Bank Limited and NayaPay to simplify corporate account openings. Similar agreements had been signed earlier with Mobilink Microfinance Bank Limited, Easypaisa Bank Limited, Mashreq Bank, and Raqami Islamic Digital Bank Limited, aiming to reduce bureaucratic hurdles for businesses.
However, the reality on the ground tells a different story. Many business owners report cumbersome documentation requirements, prolonged processing times, and poor responsiveness from bank representatives. “Accounts do get opened eventually, but documentation requirements are extremely heavy. Delays happen, and they stop picking your phone call,” a senior investor in Karachi told ProPakistani.
From the banks’ perspective, issuing corporate credit cards involves higher risk and substantial investment. Unlike individual credit cards, revenue generated from corporate cards is comparatively lower, while compliance and risk management costs are higher. Banks must invest heavily in monitoring transactions, managing defaults, and ensuring regulatory compliance, making corporate credit cards less attractive financially.
This hesitancy affects the growth of businesses that rely on credit for operational flexibility and strategic investments. Experts argue that improving regulatory frameworks, offering risk-sharing mechanisms, and incentivizing banks could encourage wider adoption of corporate credit solutions.
Until these systemic challenges are addressed, Pakistani companies may continue to struggle with access to essential financial tools, slowing the country’s broader push toward a fully digitalized banking ecosystem.
