Pakistan Launches Specialized Credit Guarantee Company for SMEs

Pakistan’s government has introduced in its first ever credit guarantee company, the National Credit Guarantee Company Limited (NCGCL), dedicated to Small and Medium Enterprises (SMEs) alone.

First established through a partnership between Karandaaz Pakistan and the government, NCGCL aims at changing the business environment for the better by enabling small businesses to attract investment opportunities and supporting SMEs in financing their projects nationwide.

While addressing the launch ceremony on Friday, Dr. Shamshad Akhtar, the Caretaker Federal Minister of Finance stated that such an initiative is vital. She highlighted that at present, the private credit for small and medium enterprises in Pakistan is stagnant around 5.2% , which clearly indicates that promoting the growth of SMEs continues to top the government’s agenda.

NCGCL envisions creating tailored products for over 1.5 million SMEs, contributing to a market size exceeding Rs3.7 trillion through strategic collaborations with financial institutions, ensuring the availability of credit.

Addressing the company as a key player in SME financing, British High Commissioner Jane Marriott stated that NCGCL would provide an important credit guarantee facility thereby facilitating access to finance. She revealed that the company has been infused with an initial Rs. 6 billion as part of the Financial Inclusion Program.

Speaking at the launch event, the Chief Executive Officer of Karandaaz Pakistan said that the organization is committed to promoting economic growth. Karandaaz Pakistan is a development finance company focused on promoting financial inclusion and driving digital transformation in Pakistan.