A report by the Asian Development Bank (ADB), Supply Chain Finance in Central Asia and Caucasus, reveals Pakistan’s potentially large supply chain finance (SCF) market, but highlights the factors impeding its full development. The report estimates that the SCF market for the region could be worth as much as USD 18bn in the medium term, half of which could come from Pakistan. These figures are based on a GDP penetration rate of 2.4 per cent which is the average in similar markets. It is obvious from the report that Pakistan could become a role model for the development of SCF in the region. It is certainly the most advanced SCF market compared to its neighbours. But a lot needs to happen before that becomes a reality.
