The Kashf Foundation has received its first disbursement of $3.5 million through a risk-sharing collaboration between Standard Chartered Pakistan and British International Investment (BII), the UK’s development finance institution. The payment marks a significant milestone in an initiative aimed at expanding financial access for underserved communities.
According to a statement issued today, the funds were released under an unfunded Risk-Participation Agreement, a programme through which BII will provide partial coverage for Standard Chartered”s risk on local currency loans directed at the microfinance sector.
This arrangement enables the bank to increase its financing capacity for sectors considered vital for driving sustainable development and catalysing private sector-led growth in the country. The partnership”s goal is to ensure that traditionally underbanked sectors gain access to financing, creating new opportunities for sustainable economic progress.
Rehan Shaikh, CEO and Head of Coverage at Standard Chartered Pakistan, stated that the partnership reflects a shared ambition to strengthen access to finance for segments that form the backbone of Pakistan’s economy. “By leveraging BII’s development expertise and Standard Chartered’s local presence, we are enabling MFIs to extend critical support to small businesses and individuals that contribute to inclusive growth,” he noted.
Stephen Priestley, MD and Head of Financial Services Group at BII, commented on the innovative risk-sharing programme, emphasizing its role in ensuring that microfinance institutions (MFIs) like Kashf can obtain essential resources. He said the initiative would help these institutions grow their portfolios, reach more clients, and “strengthen economic resilience across Pakistan.”
Roshaneh Zafar, Founder and Managing Director of Kashf Foundation, highlighted the importance of the support, stating, ‘Investing in women’s entrepreneurship is critical to the growth and development of Pakistan’s economy.’
The risk participation programme is part of Standard Chartered’s wider commitment to sustainable finance and forging partnerships that unlock capital for positive social and economic impact.