Transforming small business finance for inclusive growth

KARACHI: Karandaaz Pakistan, Accelerate Prosperity (AP) -- an AKDN initiative -- and Parwaaz Financial Services Limited (PFSL) have joined forces to boost access to finance for small businesses in Pakistan, with a special focus on women-led enterprises, climate-tech startups and innovation-driven ventures, stated a press release on Wednesday. This strategic partnership addresses a key financing gap for businesses too large for microfinance but considered risky by commercial banks. By combining Karandaaz’s expertise, AP’s capital for early-stage ventures, and PFSL’s innovative lending models, the initiative will drive financial inclusion and unlock growth for underserved sectors.

CEO of AKF-P Akhtar Iqbal emphasised the need for innovative financing mechanisms to support Pakistan’s entrepreneurship ecosystem, while CEO of Karandaaz Waqasul Hasan highlighted small businesses as vital drivers of economic resilience and innovation. Henrietta Hamilton of the UK’s FCDO welcomed the initiative as a model for inclusive, climate-resilient development, and Mr Sebastian Jacobi of KfW noted its potential to strengthen Pakistan’s startup landscape.

CEO of PFSL Javed Iqbal, stressed the importance of tailored solutions: “This collaboration empowers us to meet the distinct needs of women-led and climate-focused businesses with flexible, inclusive financial products.”