Standard Chartered (OTC:SCBFF) Bank Pakistan Ltd and the International Finance Corporation (IFC) have launched a groundbreaking $200 million rupee-equivalent trade finance initiative aimed at boosting Pakistan's economy. The partnership, which formalized an unfunded risk-participation agreement on Monday, is designed to enhance foreign exchange inflows through support to export-oriented sectors.
This strategic collaboration will see the IFC cover half of the risk associated with Standard Chartered's short-term trade and working capital loans offered to corporate clients in Pakistan. The scheme is particularly focused on large-scale manufacturers in sectors that are export-based and hold significant economic potential.
Sarmad Lone from Standard Chartered emphasized the bank's commitment to resetting globalization and fulfilling its "Here for good" pledge. On the other side, Momina Aijazuddin, representing IFC’s Financial Institutions Group, expressed confidence in the program's potential to stimulate job creation, trade, productivity, and overall economic growth within the country.
The initiative is expected to have a substantial impact on small and medium enterprises (SMEs) across various value chains, providing them with increased access to necessary funding. This move comes as part of a broader effort to navigate macroeconomic challenges and foster economic development in Pakistan. The partnership between Standard Chartered and IFC is set to play a crucial role in increasing the flow of foreign exchange into the country—a vital component for sustaining economic progress.
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