ISLAMABAD: Pakistan Stock Exchange (PSX) signed an agreement with Karandaaz whereby Technical Assistance (TA) grants would be given to prospective companies to be listed on Gem Enterprise Market (GEM) Board. Agreement was signed by MD and CEO PSX Farrukh H Khan and CEO Karandaaz Pakistan (KRN) Waqas ul Hasan at Stock Exchange, said press statement.

In an effort to promote GEM Board to eligible SMEs, PSX approached KRN to facilitate small businesses in raising much needed capital for growth of their business.

With signing of this agreement, PSX and KRN have joined hands to aid eligible small to medium growth enterprises in their quest to list on GEM Board by making grants available to them.

Farrukh Khan said initiative would help towards enhancement of Pakistan’s capital market whereby we are facilitating and supporting eligible small to medium growth enterprises to list on PSX’s GEM Board. Given that cost plays significant role in decision-making of small enterprises to list and raise capital, this agreement sets ball rolling for grant to cover part of listing expenses for 5 eligible growth enterprises to list on GEM Board. Hence, this will reduce cost of raising capital for these companies, he said.

Waqas ul Hasan highlighting role of Karandaaz in SME financing and importance of partnership between Karandaaz and PSX on opening financing opportunities for businesses said, Karandaaz mission was to foster economic growth and create jobs through financial inclusion of unbanked individuals and unserved enterprises. It has provided financing to 850,613 MSMEs through various financing instruments, resulting in supporting 1,006,930 jobs, and cumulatively generated an incremental revenue of Rs 199 billion for these MSMEs. Jo Moir Development Director at British High Commission, said that UK government had been pleased to support initiative through Karandaaz, adding GEM project allows SMEs access to finance on capital markets, enabling them to grow and fulfil their potential.

Chairperson of KRN and PSX, Dr. Shamshad Akhtar said that KRN brought to PSX its unique edge and potential to unlock GEM challenges as it has evolved broad based eco system and SME finance institutional architecture and PSX over last year succeeded in operationalizing its GEM Board as tested by listing of few companies.

Grant support of KRN to position enterprises for listing will open avenues for equity and debt, she said. “Listed companies would be elevated to an exclusive league within SME segment that have demonstrated institutional maturity and ambition and prospects for growth.”

Published in The Daily National Courier, January, 19 2023

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