Islamabad, January 12, 2024 – Pakistan took a significant step towards bolstering the growth and development of Small and Medium Enterprises (SMEs) with the launch of the National Credit Guarantee Company Limited (NCGCL).
The ceremony, presided over by caretaker Minister for Finance Shamshad Akhtar, marked a crucial initiative aimed at enhancing access to finance for SMEs across the country.
In her address during the launching ceremony, Minister Shamshad Akhtar expressed confidence that the NCGCL would play a pivotal role in catalyzing a transformative shift in the SME landscape. By facilitating greater access to finance for SMEs, the newly established entity is poised to address market challenges and foster sustainable growth in this crucial sector.
Minister Akhtar highlighted the NCGCL’s commitment to laying down an architectural framework that would effectively meet the financial needs of over 1.5 million SMEs in Pakistan. With a projected market size exceeding 3.7 trillion rupees, the NCGCL aims to prepare tailor-made financial products that cater to the diverse needs of the SME segment.
One of the primary objectives of the NCGCL is to collaborate with financial institutions to ensure the availability of credit in the market, fostering a conducive environment for SMEs to thrive. Minister Akhtar emphasized the critical role that SMEs play in the country’s economic landscape, contributing approximately forty percent to the Gross Domestic Product (GDP) and employing around eighty percent of the non-agricultural labor force.
She underscored the significance of addressing the challenges faced by SMEs, citing inadequate investments in the sector as a hindrance to the nation’s sustainable growth and development. The establishment of the NCGCL is positioned as a far-reaching institutional reform designed to fortify the SME sector, providing it with the necessary financial support to flourish.
The caretaker Finance Minister further highlighted the opportunities that SMEs offer to the low-income strata, emphasizing their potential to uplift various segments of the population. By promoting access to finance, the NCGCL aims to unlock the latent potential within the SME sector, fostering innovation, job creation, and economic diversification.
The launch of the National Credit Guarantee Company Limited reflects Pakistan’s commitment to creating an enabling environment for SMEs to thrive. As the NCGCL takes on the responsibility of facilitating financial support, it is anticipated that SMEs will be better positioned to navigate challenges, invest in growth opportunities, and contribute significantly to the country’s economic prosperity. The establishment of the NCGCL is a strategic move towards building a resilient and dynamic SME sector, driving sustainable development in Pakistan.
