Karachi: In a significant collaboration aimed at enhancing support for small business finance, Proparco, Karandaaz Pakistan, and Parwaaz Financial Services Limited have announced a new partnership. This initiative marks Proparco’s first credit risk guarantee in Pakistan and focuses on increasing access to finance for women-led businesses and green technology projects under the auspices of Karandaaz’s Women Ventures and GreenFin Innovations portfolios.

According to Karandaaz, the partnership, also involving the Agence Française de Développement (AFD) Group, introduces an ARIZ TPE 209 portfolio guarantee with Karandaaz Pakistan. This financial arrangement will cover part of the final loss on loans given to MSMEs, enabling the expansion of business operations into rural areas targeting women entrepreneurs and climate-related projects. The guarantee, supported by the French government, aims to bridge significant financing gaps that micro, small, and medium enterprises face in Pakistan.

Waqas ul Hasan, CEO of Karandaaz, expressed enthusiasm about the collaboration, emphasizing the commitment to enhancing financing for women-led initiatives and green technology advancements. Meanwhile, Mr. Guillaume Dabouis, French Deputy Head of Mission, highlighted the partnership’s alignment with France’s goals for sustainable economic development and gender equality in Pakistan. Ms. Diane Jegam, Regional Director of Proparco South Asia, remarked on the partnership’s potential to empower Pakistani MSMEs, particularly those led by women and those involved in climate action.

The partnership was officially launched during a signing ceremony in Islamabad, which also featured a panel discussion on enhancing financial mechanisms to support market development for gender and climate finance. The event gathered various experts and stakeholders to discuss the challenges and opportunities in financing initiatives focusing on these critical areas.