Access to credit is critical is fueling economic growth, especially by helping promising small businesses scale up and become more efficient. In Pakistan, however, access to credit remains a major challenge, especially because of the crowding out effect, where the financial system finds it easier and more lucrative to lend to the sovereign, which runs high fiscal deficits.

In this episode, Uzair talks to Namoos Zaheer about the link between access to private sector credit and growth. We also dive into why lazy banking makes the economic growth challenge much more complex in Pakistan, and how changing incentives and a fiscally prudent sovereign can help change the situation.

Namoos Zaheer is a Senior Financial Sector Specialist and leads the World Bank’s financial sector development initiatives in Pakistan. She has led the World Bank’s efforts in developing the housing finance market in Pakistan, including through the establishment of the Pakistan Mortgage Refinance Company. She also leads the Financial Inclusion Project which focuses on access to micro-finance and the promotion of SME finance. Her other areas of engagement are capital market development, digital finance and overall financial sector stability. Prior to this, Namoos worked in financial services in London.

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- On Human Nature by E.O. Wilson

- State of Anxiety by Alain de Botton