IFC, Standard Chartered Inject $400M into Pakistan’s Trade Finance

Standard Chartered and the IFC – International Finance Corporation plan to expand their unfunded Risk-Participation Programme (RPP) to $400 million, doubling the current $200 million facility. This #expansion aims to enhance access to trade #finance for Pakistani #businesses, providing essential liquidity for local corporations and #exporters. The increased support will help these businesses meet #international trade commitments and boost foreign exchange inflows, contributing to Pakistan’s #economic growth.

Rehan Shaikh, CEO and Head of Coverage at Standard Chartered Bank Pakistan, emphasized the importance of this #collaboration, stating, “This collaboration with IFC enables us to support our clients in growing their businesses and strengthening their growth potential.” The #program will offer improved trade and working capital loan #solutions, including supply chain financing and #sustainable finance products, thereby strengthening Pakistan’s trade #ecosystem.

Momina Aijazuddin, Regional Head of Industry of IFC’s Financial Institutions Group for the Middle East, Türkiye, Central Asia, Pakistan, and Afghanistan, highlighted the critical role of small and medium-sized enterprises (#SMEs) in Pakistan’s #economy. She noted that SMEs contribute 40% to Pakistan’s GDP, yet fewer than 200,000 out of an estimated 3.2 million SMEs have access to formal credit. By enhancing the #Risk Participation Facility, the partnership aims to provide SMEs and export-driven sectors with the working capital necessary for #growth and #success.