Islamabad, January 12, 2024: National Credit Guarantee Company Limited (NCGCL) will be the
first-ever specialised market-based SME credit guarantee facility for enhancing SMEs’ access to
finance in Pakistan, said Dr. Shamshad Akhtar, the caretaker minister for Finance, Revenue, and
Economic Affairs, on the launch of Pakistan’s first specialised credit guarantee company for SMEs in
collaboration with Karandaz.
During her keynote address, Dr Shamshad Akhtar emphasised the importance of enhanced SME
credit, which at present stands at 5.2% of the total private credit in Pakistan. She underscored that
with over 1.5 million SMEs and an estimated market size exceeding PKR 3.7 trillion, the NCGCL
will craft products to de-risk SME financing, collaborating with financial institutions to bolster credit
availability across diverse market segments. This transformative initiative aims to revolutionise SME
credit accessibility across Pakistan, leveraging capital allocation for SMEs to generate higher
economic growth, employment, and development impact.
Addressing the audience, Ms Jane Marriott, British High Commissioner to Pakistan, highlighted
NCGCL’s core objectives: extending financial inclusion and fortifying SME credit penetration. The
NCGCL’s initial capitalisation of approximately PKR 6 billion, exclusively provided by the UK
Government under its Financial Inclusion Program, underscores the UK’s commitment to this cause.
Mr Waqas ul Hasan, CEO Karandaaz, shared that Karandaaz specialises in the creation of
development finance instruments which push the needle for making capital available to underserved
individuals and firms. NCGCL will have the ability to partner with full range of bank and non-bank
financial institutions and will pursue financial inclusion agenda with well-defined development
impact objectives.
Focusing on developmental goals and economic sustainability, the NCGCL anticipates nearly PKR 50
billion additional exposure in the Pakistani market. Given that SMEs create jobs, contribute to
economic growth and exports, NCGCL is expected to create significant impact for the country.
Karandaaz Pakistan is committed to fostering financial access for micro, small, and medium-sized
enterprises through diverse investment platforms, promoting technological solutions for financial
inclusion. Leveraging a portfolio of debt and equity instruments, it actively supports SME finance in
Pakistan.
Notable attendees at the event included representatives from the British High Commission Islamabad,
Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan
and the Ministry of Finance, underscoring the collaborative commitment towards fortifying SME
credit and financial inclusion.
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