KARACHI: United States government, through US International Development Finance Corporation (DFC) and US Agency for International Development (USAID) launched new partnership with Pakistan’s leading financial institution Khushhali Microfinance Bank Ltd (KMBL) to support micro, small and medium sized enterprises (MSMEs) and women-led businesses in Pakistan. Partnership will enable MSMEs to access finance with enhanced credit history and collateral accommodations.

This project is made possible by an investment guarantee of up to $ 25 million provided by DFC in collaboration with USAID/Pakistan to KMBL. DFC’s Chief Climate Officer Jake Levine, USAID/Pakistan’s Acting Mission Director Michael Rossman, KMBL President Ghalib Nishtar and other senior US government and KMBL representatives were in attendance. DFC has provided KMBL with a $ 10 million, 50 percent loan portfolio guarantee to mobilise commercial loans to 2X-qualified MSMEs that are majority-owned, operated or staffed by Pakistani women across country.

DFC provided a $ 15 million, 50 percent loan portfolio guarantee to KMBL that will help mobilise commercial loans, specifically to MSMEs operating in Khyber Pakhtunkhwa Province and its Newly Merged Districts. Michael Rossman said, “US government initiatives, such as these loan guarantee facilities are playing a key role in unlocking private financing for small and medium businesses and women entrepreneurs and advancing US government’s long-term commitment to helping Pakistan secure a more prosperous future.”

Ghalib Nishtar said, “These loan portfolio guaranties will build-capacity and create more opportunities for KMBL to empower micro and small businesses, especially those owned by female-entrepreneurs, to contribute in socio-economic uplift of country.”

Published in The Daily National Courier, October, 26 2022

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