Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Consumer lending is a potent tool for improving the socio economic well-being of the public and for combating poverty. In a nutshell, it provides individuals who lack the financial capabilities to improve their standards of living in the short-run, an opportunity to bridge their finances and acquiring the tools with which they not only improve their lifestyles in the short run but also improve their repayment capabilities for the future. While the evidence to support the above is present, consumer lending in Pakistan faces many challenges which have stifled its impact and reach. This research report attempts to discuss and answer the problem statement of whether consumer lending is a vessel of economic growth in Pakistan and if so what are the roadblocks which stop it from realizing this potential.

To help answer the problem statement above, for this project I have relied on both primary and secondary data. This research is based on both qualitative and quantitative analysis. Quantitative analysis is based on random sampling and conducted with the help of primary data collected via a customer questionnaire which was answered by random individuals from a population which includes both those who have availed consumer financing and those who haven't. Qualitative analysis is conducted with the help of literature review, which is through secondary data collected from various sources including banking journals, bank report, State Bank of Pakistan publications, newspaper articles, published research papers, etc.

The results from both the primary and secondary data points towards a similar conclusion. Consumer lending is perceived as an agent of economic overgrowth, however there are many roadblocks which prevent consumer lending from following through on this ambition. Some of these include, high interest rate spreads, dismal customer services and lack of customer awareness, non-transparency of banking practices, adverse regulatory requirement and lack of market development

Perhaps the strongest recommendation based on this research goes out to the relevant government authorities to carry out market development projects based on the continual forays made by digital banking solutions in this regard. While both commercial banks and customers alike will need to do their part, the onus of paving the path falls on the central planner and other government authorities. Due to the inherent limitation of this research in not collecting more data from rural areas and not focusing more on the rise of digital banking solutions, it is recommended that future research should explore the potential of synergy between consumer lending and digital banking solutions.


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