Govt launches first credit guarantee company for SMEs

January 12, 2024 (MLN): The government has introduced Pakistan's first credit guarantee company, National Credit Guarantee Company Limited (NCGCL), for Small and Medium Enterprises (SMEs).

NCGCL is a partnership between Karandaaz Pakistan and the government of Pakistan.

The aim of this revolutionary initiative is to pave the way for investment for small businesses and help finance small and medium enterprises in the country.

Dr. Shamshad Akhtar, Caretaker Federal Minister of Finance in her address at the launch ceremony on Friday highlighted that the overall private credit of small and medium enterprises in Pakistan stands at 5.2%.

She said that the promotion of small and medium businesses is among the top priorities of the government.

NCGCL plans to develop products for over 1.5 million SMEs, with a market size exceeding Rs3.7 trillion through collaborations with financial institutions to ensure credit availability.

The company will play a crucial role in financing SMEs and providing a special credit guarantee facility to increase access to finance, British High Commissioner Jane Marriott noted in her address at the event.

Jane Marriott said that an initial investment of Rs6 billion has been made in this company under the Financial Inclusion Program.

Speaking at the launch event, the Chief Executive Officer of Karandaz Pakistan emphasized that Karandaz specializes in driving economic growth.

Karandaaz Pakistan is a development finance firm that aims to promote financial inclusion and drive digital transformation in Pakistan

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