On October 16 and 18, CLDP conducted two one-day programs in Islamabad and Karachi, respectively, on legal and technical issues that affect small and medium enterprises (SMEs) and their inclusion in financial systems. These were organized in conjunction with the U.S. Embassy in Islamabad, Pakistan, and the U.S. Consulate in Karachi Pakistan.  Islamabad, participants included representatives of the private sector, including Facebook and Uber; USAID’s Small and Medium Enterprises Activity; and government. In discussing whether regulatory reforms and interoperable platforms led to more cross-border e-commerce, panelists agreed that reform of trade rules affecting e-commerce could increase Pakistan's GDP by 2 percent or more. Two additional panels discussed how Pakistan’s simplifying and reducing taxes, and increasing trust and privacy in business transactions, will lead to more online activities by SMEs. The Karachi program consisted of two roundtable sessions on the same suite of issues, where a similar assemblage of stakeholders identified issues and priorities on topics including the role of financial technology services and barriers to cross-border trade.

It is estimated that 100 million Pakistanis do not participate in the formal banking sector, through banks or other means, depriving them of much-needed capital to grow their businesses. These events built on CLDP’s initial workshop in Islamabad in Mary, 2018, and form a foundation for further CLDP assistance to Pakistan in the area of financial inclusion for SMEs.