KARACHI: Sindh Enterprise Development Fund (SEDF) and U Microfinance Bank (U Bank) have formed an institutional collaboration to provide subsidised credit to micro, small, and medium enterprises (MSMEs) in Sindh, a statement said on Friday.
The agreement aims to help foster economic development through provision of subsidised loan facilities for innovative projects in the province.
A memorandum of understanding (MoU) of the partnership was signed by Mariam Pervaiz, chief commercial officer and chief of staff at U Microfinance Bank and Khizar Pervaiz, CEO of SEDF. The signing ceremony was presided over by Syed Qassim Naveed Qamar, special assistant to CM Sindh for Investment Department and PPP Projects and Kabeer Naqvi, president and CEO of U Microfinance Bank.
Under the MoU, U Bank will provide micro-loans to MSMEs in Sindh and SEDF will provide mark-up subsidy on the loans to develop entrepreneurial ability in the rural economy of the province. The expected outcome of the collaboration is to achieve a win-win situation for all stakeholders and create an enabling environment that is conducive to financial inclusion and balanced growth, SEDF said.
Speaking on the occasion, Qamar said, “The rural sector of our country is currently going through challenging times in light of the recent climate change and its impact. Public and private partnerships at such a time are key to helping uplift the masses and economically enable them.” Providing subsidised loans to MSMEs would not enhance the spirit of entrepreneurship and improve incomes, and also create employment opportunities and facilitate financial inclusion in rural as well as urban regions, he added.
The govt official termed the collaboration a step towards the financial inclusion of vital segments of the economy that he said were often overlooked by larger financing institutions.