ISLAMABAD: UK-funded Karandaaz and JS Bank signed an agreement on Wednesday to jointly provide Rs1 billion in micro-financing to small and me­­dium enterprises (SMEs).

The financing will work under a fifty-fifty risk sharing model between the two organisations to improve overall commercial lending to the SME sector in Pakistan.

Karandaaz Chief Exe­cutive Officer Ali Sarfraz added that it was critical to reverse credit contraction for broad-based economic and employment growth in the country.

JS Bank President, Basir Shamsie said the risk participation facility with Karandaaz will aid further enhancement of our SME financing portfolio and cater to the needs of the market, he said.

Karandaaz Pakistan, funded by the UK Depart­­ment for International Development, is a not-for-profit entity established in August 2014 and focuses on fostering economic growth and creating employment opportunities through financial inclusion of unbanked individuals and underserved enterprises.

Published in Dawn, January 31st, 2019