On Friday, the Ministry of Finance and Karandaaz jointly launched Pakistan’s first credit guarantee company, the National Credit Guarantee Company Limited (NCGCL), aimed at providing financial assistance to small and medium-sized enterprises (SMEs).
The inauguration event saw representatives from the British High Commission, Association of Chartered Certified Accountants (ACCA), State Bank of Pakistan, and Ministry of Finance. NCGCL aims to enhance financial accessibility through special credit guarantee facilities, with a focus on expanding financial outreach for SMEs.
Federal Minister for Finance, Revenue, and Economic Affairs Dr Shamshad Akhtar highlighted the revolutionary nature of this initiative, addressing the declining trend of private-sector credit for SMEs in Pakistan over the last five years. She emphasized the crucial role of SMEs, constituting 90% of formally registered businesses, contributing around 40% to GDP, and employing 80% of the non-agricultural workforce.
Akhtar stressed that insufficient investment in the SME sector hinders Pakistan’s sustainable growth and development. The launch of NCGCL is considered a significant institutional reform to facilitate capital investment in small businesses. British High Commissioner Jane Marriott noted the initial investment of Rs6 billion in the company under the financial inclusion program.
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