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Govt launches first credit guarantee company for SMEs

The government has launched National Credit Guarantee Company Limited (NCGCL) in order to promote access of finance for Small and Medium Enterprises (SMEs). Addressing the launching ceremony today, caretaker Minister for Finance Shamshad Akhtar expressed the confidence that the National Credit Guarantee Company Limited will have the potential and power to catalyze transformation of the SMEs landscape by leveraging access to finance for them across the board. She said the NCGCL will initiate and lay down an architecture that will help the SMEs address the market challenges. She said this will prepare products for more than 1.5 million SMEs of Pakistan and a market size of more than 3.7 trillion rupees. She said the NCGCL will work with financial institutions to ensure availability of credit in the market. The Finance Minister said that the SMEs contribute around forty percent of the GDP and employee around eighty percent of non-agriculture labour force, offering opportunities to low income strata. She said inadequate investments in the SMEs hindered the country's sustainable growth and development. Hence, she said the establishment of NCGCL is a far reaching institutional reform to strengthen the SME sector. Source: Radio Pakistan

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