KARACHI: Standard Chartered Bank Pakistan Ltd has signed an unfunded risk-participation agreement with British International Investment (BII), a UK development finance institution and impact investor, to provide support to the microfinance sector in Pakistan.

A press release said on Monday the two institutions will enter into a $40 million programme — subject to regulatory authorisation — under which BII will cover 50 per cent of the Pakistani bank’s risk on local currency loans to the target sector.

Local currency lending to microfinance institutions in Pakistan is relatively low and the sector relies on foreign currency lending, which accounts for approximately 50pc of microfinance funding. Through this programme, BII will help Standard Chartered expand its outreach across the microfinance sector by establishing a long-term local currency lender in the market.

The programme will focus on the wholesale microfinance lending, offering loans to microfinance providers so they can maintain and extend more credit to customers.

Published in Dawn, April 18th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

No time left
Updated 06 Feb, 2025

No time left

Climate change concerns continue to remain a footnote as politics dominates national discourse, surfacing only when disaster strikes.
Karim Aga Khan
06 Feb, 2025

Karim Aga Khan

PRINCE Karim Aga Khan was a man who straddled various worlds and cultures. Beyond his role as spiritual leader of ...
Cotton production
06 Feb, 2025

Cotton production

PAKISTAN’S cotton crop is on the ropes. The crop output has been falling since FY15, when the country harvested a...
Kashmir question
Updated 05 Feb, 2025

Kashmir question

The important thing is to continue dialogue process, on bilateral disputes, Kashmir issue, and move beyond rigid positions.
Letters from jail
05 Feb, 2025

Letters from jail

OVER the past week, former prime minister Imran Khan has directly addressed his concerns to both the chief justice ...
Agriculture tax
05 Feb, 2025

Agriculture tax

WITH Sindh and Balochistan finally approving changes to their agriculture income tax laws to harmonise their AIT...