Proparco, Karandaaz Pakistan, and Parwaaz Financial Services Limited have formed a strategic partnership to boost small business financing in Pakistan. This collaboration, the first credit risk guarantee offered by Proparco in the country, aims to increase access to finance for women-led businesses and green technologies.
Karandaaz, through its Women Ventures and GreenFin Innovations programs, has already allocated over PKR 1.2 billion to approximately 90 small and medium enterprises. The partnership with Proparco, the private sector financing arm of the Agence Française de Développement (AFD) Group, will provide a substantial risk guarantee to Karandaaz Pakistan. This will enable Karandaaz to expand its reach to rural areas, women entrepreneurs, and climate projects.
The French government-backed guarantee mechanism will address the significant financing gaps faced by MSMEs in Pakistan. Mr. Waqas ul Hasan, CEO of Karandaaz, expressed excitement about the partnership, emphasizing its alignment with KRN’s priorities of growing financing for women-led businesses and scaling innovative green technologies.
The French Embassy in Pakistan, represented by Mr. Guillaume Dabouis, French Deputy Head of Mission, commended the partnership for its contribution to sustainable economic development and gender equality in Pakistan. Ms Diane Jegam, Regional Director of Proparco South Asia, highlighted the partnership’s potential to unlock the potential of Pakistan’s MSMEs, especially those led by women and focused on climate action.
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The partnership was announced during a signing ceremony in Islamabad, followed by a panel discussion on “The Role of Finance and Supporting Mechanisms to Strengthen the Market for Gender and Climate Finance.” The event brought together experts and stakeholders to discuss challenges and opportunities in financing gender and climate initiatives.
