DFID and Karandaaz bring Credit Enhancement Facility to Pakistan for Infrastructure Projects

Islamabad, September 11, 2018: The Pakistan Credit Enhancement Facility (PCEF) was
introduced to public and private sector stakeholders today in a conference co-hosted by
Karandaaz Pakistan and UK’s Department for International Development (DFID) in Islamabad.
The local currency credit enhancement facility is being set up to address and overcome existing
constraints in the supply of local financing to infrastructure projects and to help the development
of the local financial market.
Patricia Seex, Head of Economic Growth, DFID Pakistan while speaking at the conference said,
“I am delighted that DFID has supported the development of this innovative and important
facility to help infrastructure developers access the finance they need at a price they can afford.
This facility will contribute to addressing both Pakistan’s infrastructure gaps, particularly for
smaller projects and social infrastructure, and to the development of the financial sector which is
underserving all but largest businesses.”
Lasitha Perera, CEO of GuarantCo, said:
“It is expected that the Pakistan Credit Enhancement Facility (PCEF) will enhance Pakistan’s
capacity to attract and unlock latent pools of capital from pensions and insurance for
infrastructure investment into key sectors of the country’s economy. GuarantCo has been active
in Pakistan since 2013 as an international credit enhancement provider and is delighted to be
part of this constructive partnership to establish a Pakistan-based credit enhancement facility as
we have successfully done in Nigeria. In Pakistan, this facility will provide local currency
guarantees for infrastructure projects making them bankable for commercial lending. PCEF is
expected to support smaller scale power projects (including renewables); logistics including
storage, warehouses, industrial parks, pipelines, smaller port developments, etc.; secondary
roads with some demand risk; hospitals; education; housing; waste water and water including
desalination; local transportation; and inputs to infrastructure projects.”
Ali Sarfraz, CEO of Karandaaz Pakistan said,
“We are happy to have partnered with this initiative. The Credit Enhancement Facility will help
mobilise private investment in infrastructure, in order to increase service provision for the poor,
boost economic growth and alleviate poverty. Similar facilities have been established in some of
the world’s poorest countries. This first-of-its-kind facility in Pakistan will invigorate the debt
market to fuel infrastructure development in the country in the long-term while working through
local commercial banks & NBFIs. There is an existing strong need for credit enhanced debt
instruments and given the eligibility criteria of the types of transactions that can benefit from this,
there is a strong identifiable deal flow in Pakistan.”
Karandaaz Pakistan promotes access to finance for SMEs through commercially directed
investments and financial inclusion for individuals through promotion of digital financial services.
It also develops and disseminates evidence based insights, and encourages innovation in
financial space. Karandaaz has financial and institutional support from DFID and the Bill &
Melinda Gates Foundation.

Badar Zubair

I am technology enthusiast. I've been working online since 2014. I love collecting information about new technologies and spreading them to other.

View all posts by Badar Zubair →

Leave a Reply