(WebDesk) Pakistan Poverty Alleviation Fund (PPAF) has disbursed Rs. 145 billion through more than 7.7 million loans since 2000 by its Credit and Enterprise Development component.
Out of the total, 75 per cent of total funds for micro-finance were disbursed to women and 76 per cent loans were disbursed to borrowers in rural areas. Official sources, while listing the steps taken by the government to provide financial support to small businesses on Sunday, said that these included the launch of Prime Minister’s Youth Business loans Scheme for financing small businesses, especially the youth.
The other steps included the passing of the Secured Transactions Law for establishing secured transactions registry, which will create a charge on moveable assets of the smaller entities, launch of credit guarantee scheme for fresh and collateral, deficient, small and rural enterprises in coordination with United Kingdom’s Department for International Development (DFID) and government of Pakistan, along with capacity building of banks in provision of financial services to small businesses in a quick and easy way.
The sources said that enhanced interaction with Small & Medium Enterprises Development Authority (SMEDA) was being ensured to create awareness among SMEs about financing products.
The government, through SME Bank has disbursed Rs18, 411 million to SMEs since its inception and contributed to employment generation of up to 33500 workers.
Pakistan Micro-finance Investment Company (PMIC) was incorporated and started its operation in December 2016, by taking over PPAF’s portfolio in the micro-finance sector with equity close to Rs6 billion with 49 per cent shares held by PPAF and 37 per cent by Karandaz Pakistan.
The sources said by April 2017, PMIC will formally start lending, using its equity and funds raised through commercial financing.