IFC, HMB launch risk-sharing facility for SMEs

February 10, 2026 (MLN): IFC and Habib Metropolitan Bank Limited (PSX:HMB) have entered into a new risk-sharing facility to expand access to finance for small and medium enterprises (SMEs), including agricultural SMEs, and help address Pakistan’s SME financing gap.

SMEs account for nearly 90% of businesses in Pakistan and contribute about 40% to GDP, yet fewer than 200,000 of the country’s estimated 3.2 million SMEs currently have access to formal credit. 

The facility is aimed at catalyzing lending to underserved businesses, supporting job creation, and strengthening competitiveness across the SME segment.

The partnership is expected to help HABIBMETRO significantly scale up its SME loan portfolio in line with its medium-term growth strategy, according to a press release issued.

By demonstrating sustainable and commercially viable SME lending models, the facility is also expected to encourage greater financing toward productive sectors and inform broader market practices.

Momina Aijazuddin, IFC’s Regional Industry Director for the Financial Institutions Group in the Middle East and Central Asia emphasized that the targeted risk-sharing facility with HABIBMETRO will expand credit for SMEs and agri-centric businesses, promoting inclusive, sustainable, and commercially viable growth.

Khurram Shahzad Khan, President and CEO of HABIBMETRO, said the bank is working to improve access to finance for SMEs, which form the backbone of Pakistan’s economy. 

He added that the partnership with IFC will enable HABIBMETRO to broaden and diversify its SME portfolio across regions and industrial sectors, including agriculture, while further strengthening its longstanding relationship with IFC.

Under the agreement, IFC’s unfunded risk exposure will be up to $40 million (Pakistani rupee equivalent), covering up to 50% of principal losses on a portfolio of SME loans of up to $80 million to be originated by HABIBMETRO in Pakistan. 

Structured under IFC’s Small Loan Guarantee Program (SLGP), the facility will have a tenor of up to six years and will be supported by a pooled first-loss guarantee from the International Development Association’s (IDA) Private Sector Window Blended Finance Facility.

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