KARACHI: Caretaker Finance Minister Shamshad Akhtar on Friday expressed her optimism about the newly-launched National Credit Guarantee Company Limited’s (NCGCL) capacity to transform the SME landscape through widespread financial access.
Caretaker Finance Minister Shamshad Akhtar was speaking at the launching ceremony on Friday. Dr Akhtar said that the company is set to establish a framework that will address market challenges faced by SMEs, preparing financial products for an estimated 1.5 million SMEs, with a market size exceeding PKR 3.7 trillion.
She pointed the government launched the National Credit Guarantee Company Limited (NCGCL) to enhance the financial accessibility for Small and Medium Enterprises (SMEs).
The NCGCL is a collaborative venture between the Government and Karandaaz Pakistan and aims at revolutionizing the SME sector by broadening the avenues for finance.
The NCGCL’s strategy includes partnering with financial institutions to ensure the consistent availability of credit, thereby facilitating the SMEs’ growth and development. With SMEs accounting for approximately 40% of Pakistan’s GDP and employing 80% of the non-agricultural labor force, the sector represents a vital component of the economy, particularly for the lower-income groups.
The establishment of the NCGCL is heralded as a landmark institutional reform, aimed at invigorating the SME sector, which has been impeded by insufficient investments. This initiative is expected to pave the way for sustainable economic growth and development in Pakistan.
Earlier, the Senate Standing Committee on Industries and Production, during its meeting on January 11, extensively delved into the role and impact of SMEs, shedding light on their pivotal economic significance. The standing committee disclosed that Pakistan has 5.2 million Small and Medium Enterprises (SMEs), constituting a robust 40% contribution to the GDP.
