Pakistan Unveils its First Credit Guarantee Company for Small and Medium Enterprises (SMEs)

The Finance Ministry unveiled Pakistan’s first special credit guarantee company, the National Credit Guarantee Company Limited (NCGCL), to provide financial assistance to small and medium-sized enterprises (SMEs) in the country. The inauguration ceremony was attended by representatives from the British High Commission, Association of Chartered Certified Accountants (ACCP), State Bank of Pakistan, and the Ministry of Finance. NCGCL, a joint venture of the Ministry of Finance and Karandaaz, aims to enhance financial accessibility through special credit guarantee facilities, focusing on expanding financial reach for small and medium-scale businesses. Minister for Finance Dr. Shamshad highlighted the significance of this initiative, noting the low private credit for SMEs in Pakistan and the potential for the SME sector to contribute significantly to the country’s GDP and employment. She emphasized that the launch of NCGCL was a transformative step to facilitate capital investment for small businesses, creating products tailored for the Pakistani market and fostering economic growth for businesses through collaboration with financial institutions.