GOP launches first National Credit Guarantee Company Limited for SMEs

National-Credit-Guarantee-Company-Limited

The Government of Pakistan (GOP) has launched National Credit Guarantee Company Limited (NCGCL) to promote access to finance for Small and Medium Enterprises (SMEs).

According to the media reports, Caretaker Federal Minister for Finance Shamshad Akhtar addressed the launching ceremony of the National Credit Guarantee Company Limited today (Friday, January 12). She expressed confidence that the National Credit Guarantee Company will have the potential and power to catalyze the transformation of the Small and Medium Enterprises landscape by leveraging access to finance for them across the board.

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Caretaker Federal Minister for Finance Shamshad Akhtar said that the NCGCL will initiate and lay down an architecture that will help Small and Medium Enterprises address the market challenges. She said this will prepare products for more than 1.5 million SMEs in Pakistan and a market size of more than 3.7 trillion rupees. She said the NCGCL will work with financial institutions to ensure the availability of credit in the market.

According to the Caretaker Finance Minister, small and medium-sized enterprises (SMEs) account for around 40% of the GDP and employ 80% of the workforce outside of agriculture, providing possibilities for lower-class people. She claimed that the nation’s ability to thrive and prosper sustainably was hampered by insufficient investments in SMEs. Accordingly, she claimed that the creation of NCGCL is a significant institutional reform aimed at bolstering the SME industry.