Monday, December 5

Pact signed to provide credit guarantee for Sind projects

KARACHI: Sindh Enterprise Development Fund (SEDF) and InfraZamin Pakistan (IZP) have signed an agreement for institutional collaboration to provide credit guarantee facility for projects in Sindh. The agreement aims to foster economic development through provisions of credit guarantee facility for innovative projects in Sindh.

The agreement signing ceremony was chaired by Syed Qassim Naveed Qamar, Special Assistant to CM Sindh for Investment Department and PPP Projects. Khizar Pervaiz, CEO SEDF and Ms Maheen Rehman, CEO-IZP signed the agreement in presence of various officials and dignitaries from public and private sector including Syed Mansoor Abbas Rizvi, Secretary Investment Department, and Abdul Rahim Suriya, former President ICAP.

SEDF has been established by the Government of Sindh with a vision to encourage investments in various sectors of the economy to inculcate entrepreneurial ability and provide a major push to the wider economy. It aims to promote opportunities in agri value chains, mining and mineral processing, horticulture and floriculture, green energy and innovation and technology for multiple economic benefits on growth, intermediary services and productivity. It seeks to introduce interventions to improve efficiency and profitability through various initiatives of technical assistance and mark-up subsidies.

While, InfraZamin is an innovative credit enhancement guarantee company, conceived and designed to issue guarantees for promoting private sector projects. It provides guarantee solutions for infrastructure projects in Pakistan and is an initiative of the Private Infrastructure Development Group (PIDG).

Under the said agreement, IZP will provide Credit Guarantee to banks to facilitate project financing, whereas SEDF will provide mark-up subsidy on loans extended by the Banks to develop financing facilities for Projects in Sindh. The expected outcome of the collaboration between SEDF and IZP is to create a win-win situation for all stakeholders and create an enabling environment that is conducive for financial inclusion and balanced growth.

This is a step towards financial inclusion of neglected yet vital segments/sectors of the economy. This will lead to modernization of rural economy of Sindh and Insha’Allah pave the way for overall growth of Pakistan’s economy.