ISLAMABAD: The US government, in partnership with three investment funds, is managing a pool of more than Rs15.6 billion for investment in Pakistan’s dynamic small and medium-sized businesses.

Under the Pakistan Private Investment Initiative (PPII), a programme of the US Agency for International Development (USAID), the US is capitalising on the expertise of these investment funds to make investment decisions that will, spur economic growth, and generate profits for investors.

USAID Mission Director for Pakistan John Groarke announced on Thursday that all three private equity funds established under the PPII are making investments.

The PPII consists of the Abraaj Pakistan Fund, Pakistan Catalyst Fund, and Baltoro Growth Fund – three professionally managed investment funds that provide equity capital for Pakistan’s fast-growing small- and medium-sized businesses.

The USAID programme has provided Rs2,496 million for each fund, for a total contribution of nearly Rs7.5bn, and the three funds have each matched or exceeded the USAID contribution.

“The PPII design is unique in partnering with local investment firms to support the SME sector to grow and thrive,” Mr Groarke said.

“With the matching contributions from the three partner investment firms, PPII is eventually going to make more than Rs15.6bn in equity financing available to selected SMEs. This clearly demonstrates the interest of private equity firms and the value of investing in Pakistan.”

“The SME sector can be a tremendous engine for employment and GDP growth in Pakistan,” said CEO Pakistan Catalyst Fund, Asad Shafqat.

Ali Saigol, CEO of the Baltoro Fund said, “The Pakistan Private Investment Initiative has successfully aligned USAID’s development objectives with private investor interests, thus establishing a sustainable platform that will support SME growth for decades to come. We hope this will serve as a template for future public-private partnerships.”

Published in Dawn, March 10th, 2017