Islamabad, The Pakistani government has officially launched the National Credit Guarantee Company Limited (NCGCL), aiming to enhance financing access for Small and Medium Enterprises (SMEs).

According to Ministry of Information and Broadcasting, Caretaker Minister for Finance Shamshad Akhtar, during the launch ceremony, expressed optimism about the NCGCL’s role in transforming the SME landscape. She emphasized that the company would play a crucial role in leveraging access to finance for SMEs across the board.

Minister Akhtar highlighted that the NCGCL would establish an architecture to assist SMEs in addressing market challenges. The initiative is set to develop products for over 1.5 million SMEs in Pakistan, representing a market size of more than 3.7 trillion rupees. The NCGCL will collaborate with financial institutions to ensure credit availability in the market.

The Finance Minister underscored the significant contribution of SMEs to the country’s GDP, accounting for around forty percent, and their employment of about eighty percent of the non-agriculture labor force. She pointed out that insufficient investments in SMEs have been a barrier to Pakistan’s sustainable growth and development. Therefore, the creation of the NCGCL is seen as a vital institutional reform to bolster the SME sector.