Karandaaz to invest Rs700mn from DFID in ORIX Leasing
KARACHI: Karandaaz Pakistan, supported by UK’s Department for International Development (DFID), is providing a loan of PKR 700 million to ORIX Leasing Pakistan to increase access to finance for small enterprises. ORIX will use this facility to on-lend to small businesses and grow the share of loans to small enterprises in its portfolio, says a Press release.
Small and Medium Enterprises (SMEs) are vital to economic and social progress. According to the State Bank, SMEs contribute 30 percent to Pakistan’s GDP, driving economic growth and job creation. Karandaaz is committed to enhancing access to finance for SMEs and this agreement with ORIX will contribute to achieving this target. This loan facility from Karandaaz will benefit over 160 small businesses, creating approximately 850 new jobs, and increasing revenue for the partner businesses by PKR 4.4 billion.
Sarfraz, CEO Karandaaz Pakistan said, “We believe that this loan facility from Karandaaz will enable ORIX to enhance its focus on small enterprises, in line with its credit model and business strategy. This is one of many such initiatives that Karandaaz Pakistan has undertaken to promote inclusive economic growth, job creation, and improved incomes through greater financial inclusion of Pakistanis.”
Shaheen Amin, CEO ORIX Leasing Pakistan said, “ORIX has been operating in Pakistan for over 30 years and is currently the only leasing company with meaningful operations in the leasing sector. In addition to a wide outreach, it is also the largest Non-Banking Finance Company that focuses on SMEs. It has positioned itself in the industry with a risk assessment model that is well suited to extend credit to SMEs.”
Ms. Joanna Reid, Head of DFID Pakistan said, “The UK is working with Karandaaz in Pakistan to think big but start small; a stronger small business segment for an economy means a direct increase in jobs and revenue growth for the country. This loan facility is part of the UK Department for International Development’s (DFID) efforts to deepen access to finance for small enterprises. I am delighted that DFID’s investment in Pakistan is contributing to private sector-led and sustainable economic growth.”
Other programmes running under Karandaaz are increasing access to finance for unbanked populations by leveraging digital technologies, developing and disseminating evidence based insights, and encouraging innovation in financial space. Karandaaz Pakistan has received funding from the United Kingdom’s Department for International Development (DFID) and the Bill & Melinda Gates Foundation (BMGF).