ISLAMABAD: Speaking at the launch of Pakistan’s first specialized credit guarantee company for SMEs in partnership with Karandaz, Dr. Shamshad Akhtar, the caretaker minister for Finance, Revenue, and Economic Affairs, stated that National Credit Guarantee Company Limited (NCGCL) will be the first-ever specialized market-based SME credit guarantee facility for improving SMEs’ access to financing in Pakistan.
Dr. Shamshad Akhtar emphasized the significance of expanded SME financing in her keynote speech. Currently, 5.2% of all private credit in Pakistan is extended to SME owners. She emphasized that the NCGCL will develop products to reduce the risk associated with SME financing and work with financial institutions to increase loan availability in a variety of market categories. The NCGCL is expected to have over 1.5 million SMEs and a market size of over PKR 3.7 trillion. With the help of capital allocation for SMEs, this ground-breaking project seeks to revolutionize SME credit accessibility throughout Pakistan and increase economic growth, employment, and development effect.
The British High Commissioner to Pakistan, Ms. Jane Marriott, spoke to the gathering and emphasized the two main goals of the NCGCL, which are to increase SME credit penetration and broaden financial inclusion. The UK’s dedication to this cause is demonstrated by the NCGCL’s initial capitalization of roughly PKR 6 billion, which was supplied completely by the UK Government through its Financial Inclusion Program.
Mr Waqas ul Hasan, CEO Karandaaz, said that Karandaaz specialises in the establishment of development finance instruments which push the needle for making money available to underserved persons and enterprises. With clearly defined development impact objectives, NCGCL will be able to collaborate with a wide range of bank and non-bank financial institutions in pursuit of its financial inclusion mission.
With an emphasis on economic sustainability and developmental objectives, the NCGCL expects to gain around PKR 50 billion more exposure in the Pakistani market. Since SMEs boost exports, economic growth, and employment creation, NCGCL is anticipated to have a major effect on the nation.
With a variety of investment platforms, Karandaaz Pakistan is dedicated to facilitating financial access for micro, small, and medium-sized businesses while advancing technical advancements that promote financial inclusion. It actively supports SME financing in Pakistan by utilizing a portfolio of debt and equity instruments.
Representatives from the British High Commission in Islamabad, the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan, and the Ministry of Finance were among the notable guests at the event, highlighting the shared commitment to bolstering SME credit and financial inclusion.
