This initiative aims to bridge a critical market gap by addressing the financial needs of businesses that are too large for microfinance yet perceived as too risky by traditional commercial banks. Leveraging Karandaaz’s extensive expertise in small business finance, AP’s provision of capital to early-stage companies, and PFSL’s innovative lending models, the partnership aims to foster sustainable economic growth and financial inclusion across underserved sectors.
Setting the tone at the event, Mr Akhtar Iqbal, CEO Aga Khan Foundation Pakistan (AKF-P), spoke about the growing need for innovative partnerships to support Pakistan’s entrepreneurial ecosystem. Introducing the collaboration between AP, Karandaaz, and PFSL, he noted, “Having deployed over USD 15 million across 500+ businesses in Central and South Asia through various instruments, AP is now deepening its engagement with the ecosystem — cultivating strategic partnerships, advancing innovative financing mechanisms, and enabling co-investment opportunities to maximize support for these businesses.”
Highlighting the significance of the initiative, Mr Waqas ul Hasan, CEO Karandaaz, stated, “Small businesses form the backbone of our economy, driving job creation, economic stability, and innovation. As a pioneer and market leader in developing innovative financial solutions, Karandaaz consistently strives to set an example for the sector. It’s a momentous occasion that these institutions namely AP, Karandaaz and PFSL are coming together for delivering a market development access to finance solution for small businesses.”
The partnership is closely aligned with broader development priorities, including inclusive economic growth and climate resilience. Ms Henrietta Hamilton, Deputy Development Director at the UK’s Foreign, Commonwealth & Development Office (FCDO), reaffirmed the UK’s commitment to supporting such initiatives: “The UK government supports inclusive economic growth, gender equality, and climate resilience. This collaboration shows how development finance and private-sector expertise can work together to overcome market barriers and promote sustainable economic development.”
Mr Javed Iqbal, CEO PFSL, added further context about the importance of tailored financial products: “Small enterprises, particularly those led by women or working in climate resilience, face specific challenges that traditional banking models don’t address. This collaboration enables us to offer inclusive, flexible financial solutions designed specifically for their unique needs, helping them scale and thrive sustainably.”
This landmark agreement underscores the collective commitment, of all implementing partners and their respective sponsors, to fostering a resilient, inclusive financial environment, driving sustainable business growth, and advancing economic opportunity across Pakistan
