Deal inked to lift microfinance sector
Deal British International Investment (BII) has signed an unhedged risk participation agreement with a foreign bank operating in Pakistan to cover 50% risk of financing worth $40 million (Rs 11.40 billion) to various sectors. It recently entered into an agreement with Standard Chartered Bank Pakistan Limited (SCB) to support the microfinance sector.
Approval from the State Bank of Pakistan (SBP) is required to complete the deal and the loans are denominated in rupees. SCB said in a statement that local foreign currency lending to microfinance institutions in Pakistan was relatively low and the sector relied on foreign currency loans, which accounted for about 50% of microfinance.
The agreement contributes to the UN’s Sustainable Development Goals (SDGs), which aim to increase resilience to economic shocks (SDG-1), secure economic opportunities for women (SDG-5) and formalize and grow SMEs (SDG- 8). , the announcement added. During his visit, he will attend the summit of the new global finance pact, which will be held in Paris.
Islamabad hopes the summit will provide an opportunity for leaders to discuss the contours of a new global architecture that can meet the challenges of sustainable development, environmental protection, energy transition and financing the climate change agenda.
The prime minister tweeted a statement about his upcoming visit, saying he would continue to focus on “presenting Pakistan’s position on the need to restructure international financial institutions to meet the challenges facing humanity today.”
British Deputy High Commissioner in Karachi Sarah Mooney said: “BII continues to deliver strategic investment in Pakistan’s economy. Innovative financial products like these are key to empowering small businesses, creating jobs and promoting sustainable economic growth.” “This agreement demonstrates the UK’s commitment to achieving the Sustainable Development Goals and working with all members of the Commonwealth for prosperity and trade.”
Published in EDP BLOGS on June 22,2023′
