KARACHI, Pakistan: The Sindh Enterprise Development Fund (SEDF) and the U Microfinance Bank (U Bank) have formed an Institutional Collaboration to provide subsidized credit for Micro, Small & Medium Enterprises (MSMEs) in Sindh.
The agreement aims to foster economic development through the provision of subsidized credit facilities for innovative projects in Sindh.
The Memorandum of Understanding (MoU) of this partnership was signed by Ms. Mariam Pervaiz, Chief Commercial Officer & Chief of Staff – U Microfinance Bank and Mr. Khizar Pervaiz, CEO – SEDF while the signing ceremony was presided over by Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank and Mr. Syed Qassim Naveed Qamar, Special Assistant to Chief Minister Sindh for Investment Department and PPP Projects.
The event was attended by various officials and dignitaries from the public and private sectors including Syed Mansoor Abbas Rizvi, Secretary to Government of Sindh-Investment Department, other members of SEDF Board of Directors, and senior management officials from U Microfinance Bank.
Under the said agreement, U Bank will provide micro-loans to MSMEs in Sindh and SEDF will provide mark-up subsidy on these loans to develop entrepreneurial ability in the rural economy of Sindh.
The expected outcome of the collaboration between SEDF and U Bank is to create a win-win situation for all stakeholders and create an enabling environment that is conducive to financial inclusion and balanced growth.
Speaking on the occasion, Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank stated, “The rural sector of our country is currently going through challenging times in light of the recent climate change and its impact. Public and private partnerships at such a time are key to help uplift the masses and economically enable them. Providing subsidized loans to MSMEs will not just enhance the spirit of entrepreneurship and improve incomes, but will also in the longer run create employment opportunities and facilitate financial inclusion in rural as well as urban regions.”
This collaboration is a step towards the financial inclusion of vital segments of the economy that are often overlooked by larger financing institutions. This will lead to the modernization of rural economy of Sindh and pave the way for overall growth of Pakistan’s economy.