The Ministry of Finance and Karandaaz Pakistan have jointly unveiled the country’s first specialized credit guarantee company tailored for Small and Medium Enterprises (SMEs) – the National Credit Guarantee Company Limited (NCGCL).
The partnership between the Ministry of Finance and Karandaaz in this initiative was formally disclosed in 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 positioned to play a crucial role in facilitating the financing of small and medium enterprises across Pakistan. A key feature of this new venture is the provision of a specialized credit guarantee facility, aimed at enhancing the accessibility of finance for SMEs and fostering growth in this sector.
Caretaker Federal Minister of Finance Dr. Shamshad Akhtar shared insights into the current state of private credit for small and medium enterprises in Pakistan, which stands at 5.2 percent. She emphasized the revolutionary nature of the initiative, highlighting its primary goal of paving the way for increased investment in small businesses.
In further detailing the scope of NCGCL’s impact, Dr. Shamshad mentioned plans to develop financial products tailored for over 1.5 million SMEs in Pakistan, with an anticipated market size exceeding Rs. 3.7 trillion. Collaboration with financial institutions is integral to NCGCL’s strategy, ensuring the availability of credit in the market and contributing to overall economic development.
British High Commissioner Jane Marriott expressed commitment to the initiative and underscored the initial investment of Rs. 6 billion made through the Financial Inclusion Program.
The Chief Executive Officer of Karandaaz Pakistan highlighted the organization’s expertise in driving economic growth. With this pioneering initiative, 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.
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