US govt. has also launched a USD25 million partnership with Khushhali Bank to support micro, small and medium sized enterprises and women-led businesses in Pakistan.
Khushhali Microfinance Bank Limited has launched an initiative to provide relief for the large number of flood-hit families, who need food, shelter, and rehabilitation after this catastrophe.
With the winter season approaching soon, the situation is likely to be unfavorable for the flood-affected families. In view of such a situation Khushhali Bank is extending its full support in ensuring families who have lost their homes and livelihoods in this calamity, so that they are provided with adequate relief such as warm clothing, tents, and medical assistance, says a press release.
“Through its flood-relief program, Khushhali Microfinance Bank is committed to mitigating the losses faced by flood affectees across the remote regions of Sindh, Balochistan, and Punjab provinces. It is now arranging food-ration distribution drives in the affected villages surrounding Sukkur, Larkana, Hyderabad, and Mirpurkhas too,” it said.
The bank has mobilized its volunteer teams, who are participating in the relief efforts, all across the affected areas. Initially, Khushhali Microfinance Bank provided food packages to flood victims in the surrounding villages of DG Khan and Taunsa, to fulfil the immediate requirements for food and nutrition. In the second phase the bank provided tents, sheets, and food packages to the affectees of Khairpur. Medical camps are also being arranged in the surrounding villages, to provide free health checkups and medicines to a large number of deserving people, including women and children, the bank claimed in press release.
President and Chief Executive Officer of Khushhali Microfinance Bank – Ghalib Nishtar stated: “The devastating floods in Pakistan have left behind a heartbreaking tale of destruction, as millions of affectees have been left homeless and need our support to survive this natural calamity. Khushhali Microfinance Bank is fully committed to helping the flood affectees of Pakistan, as we continue to extend generous support for their relief and rehabilitation.”
Earlier on October 24, the United States government, through the U.S. International Development Finance Corporation (DFC) and the U.S. Agency for International Development (USAID), launched a new partnership with Khushhali Microfinance Bank Ltd. (KMBL) to support micro, small and medium sized enterprises (MSMEs) and women-led businesses in Pakistan.
The partnership will enable the MSMEs to access finance with enhanced credit history and collateral accommodations. This project is made possible by an investment guarantee of up to $25 million provided by DFC in collaboration with USAID/Pakistan to KMBL.
The launch event brought together DFC’s Chief Climate Officer Jake Levine, USAID/Pakistan’s Acting Mission Director Michael Rossman, KMBL President Ghalib Nishtar, and other senior U.S. government and KMBL representatives.
DFC has provided KMBL with a $10 million, 50 percent loan portfolio guarantee to mobilize commercial loans to 2X-qualified MSMEs that are majority-owned, operated or staffed by Pakistani women across the country. DFC’s 2X Global Women’s Initiative has catalyzed more than $13.5 billion of gender smart investment in projects that are owned by women, led by women, or provide a product or service that empowers women.
DFC also provided a $15 million, 50 percent loan portfolio guarantee to KMBL that will help mobilize commercial loans, specifically to MSMEs operating in Khyber Pakhtunkhwa Province and its Newly Merged Districts (NMDs).
USAID Acting Mission Director Michael Rossman said, “U.S. government initiatives, such as these loan guarantee facilities, are playing a key role in unlocking private financing for small and medium businesses and women entrepreneurs and advancing the U.S. government’s long-term commitment to helping Pakistan secure a more prosperous future.”
“The signing underscores DFC’s commitment to supporting the resilience of small businesses that improve lives and enable inclusive growth and employment,’ said DFC Chief Climate Officer Jake Levine. “This support will help small businesses in Pakistan adapt to the impacts of the climate crisis by providing financing to support businesses in regions impacted by the recent floods as well as those that increase access to new mitigation technologies.”
KMBL President Ghalib Nishtar expressed his gratitude to the DFC for placing its trust in KMBL’s high standards and said “These loan portfolio guaranties will build-capacity and create more opportunities for KMBL to empower micro and small businesses, especially those owned by female-entrepreneurs, to contribute in the socio-economic uplift of the country.”
Research data shows MSMEs contribute to more than 30 percent of Pakistan’s Gross Domestic Product and generate 80 percent of the country’s non-agricultural employment, but only represent 6.3 percent of all private sector lending. Women-led MSMEs make up approximately 8 percent of all MSMEs in Pakistan, yet they face a finance-gap of $3.5 billion. Loan guarantee mechanisms enable financial partners to transfer certain risks that they would otherwise be unable to easily absorb or manage on their own thereby helping to mobilize resources to assist underserved populations and regions. (PR)