The Ministry of Finance, in collaboration with Karandaaz Pakistan, has introduced Pakistan’s inaugural credit guarantee company tailored for Small and Medium Enterprises (SMEs) – the National Credit Guarantee Company Limited (NCGCL).
The official disclosure of this partnership occurred at an event attended by representatives from the British High Commission, the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan, and the Ministry of Finance.
NCGCL is set to play a vital role in streamlining the financing for small and medium enterprises across Pakistan. A notable feature of this venture is the specialized credit guarantee facility, designed to enhance finance accessibility for SMEs, fostering growth in this crucial sector.
Caretaker Federal Minister of Finance, Dr. Shamshad Akhtar, highlighted the current state of private credit for SMEs in Pakistan, standing at 5.2 percent. She emphasized the initiative’s revolutionary nature, aiming to boost investment in small businesses.
Dr. Shamshad outlined NCGCL’s scope, including plans to tailor financial products for over 1.5 million SMEs in Pakistan, anticipating a market size exceeding Rs. 3.7 trillion. Collaboration with financial institutions is integral to NCGCL’s strategy, ensuring credit availability and contributing to overall economic development.
British High Commissioner Jane Marriott expressed commitment to the initiative, noting the initial investment of Rs. 6 billion through the Financial Inclusion Program.
Karandaaz Pakistan’s CEO emphasized the organization’s expertise in driving economic growth. The National Credit Guarantee Company Limited is poised to become a crucial player in supporting and facilitating the financial growth of small and medium enterprises in Pakistan.
