Islamabad: Two financial institutions, Karandaaz and JS Bank, will jointly provide a microfinancing package of up to PKR 1 billion to small and medium enterprises (SMEs) – a news source reported.
The two sides finalised an agreement with regard to financing SMEs on Wednesday. Karandaaz and JS Bank will work under a 50-50 risk sharing model.
Sharing the details, Karandaaz CEO Ali Sarfraz said that this framework was crucial to reversing credit contraction for Pakistan’s economic and employment growth.
Basir Shamsie, president of JS Bank, said that this mechanism will facilitate the two institutions with respect to their respective SME financing portfolios.