Karandaaz and JS Bank have partnered to jointly make PKR 1 billion available for small and medium enterprise (SME) financing in order to create jobs, improve household incomes and increase economic growth at a macro-economic level in Pakistan.
Joanna Reid, Head of DFID Pakistan, speaking about the partnership between Karandaaz and JS Bank said,
“This is an exciting new step in the UK’s support to Pakistan’s economic growth and improved business investment climate I’m proud of the agreement signed today as SME financing means more jobs for younger people, a skilled workforce and innovation I businesses. The UK is committed to supporting Pakistan to reduce poverty and achieve prosperity for all.”
The risk participation agreement between the two entities will facilitate SME financing and is designed on a 50-50 risk participation basis between the two organizations to improve overall commercial lending for the SME sector in Pakistan.
Speaking at the occasion Mr. Ali Sarfraz, CEO Karandaaz Pakistan said,
“It is critical for broad-based economic and employment growth in Pakistan that the existing credit contraction is reversed and brought in line with comparable international benchmarks of at least 20-30 percent of banking assets directed towards SME financing.
It is also crucial for commercial banks to develop viable credit models to lend to this vital agent of the economy. Karandaaz is glad to be partnering with JS Bank, one of Pakistan’s most forward-looking banks, to introduce this financing for SMEs.”
JS Bank’s CEO and President, Mr. Basir Shamsie stated:
“Living up to its commitment towards financial inclusion, innovation, and customer-centricity, JS Bank is striving to introduce value-added partnerships and offerings catering to SME financing. We currently offer a range of trade facilitation services, business loans, dedicated relationship managers and other convenience-focused amenities to augment the banking experience for our SME clients. This risk participation facility with Karandaaz will aid further enhancement of our SME financing portfolio and cater to the needs of the market.”