KARACHI (PRESS RELEASE)
IFC, a member of the World Bank Group, launched an Supply Chain Finance advisory services engagement with Pakistan’s fifth largest private bank, Bank Alfalah Limited, to help boost access to finance for Small and Medium Enterprises (SME), spurring economic growth.
This partnership will help Bank Alfalah build and launch a best practice Supply Chain Finance proposition to grow its SME Banking business. Speaking on the occasion, Mehreen Ahmed (Group Head, Retail Banking, Bank Alfalah) said, “Supply chain finance programs present a viable commercial business use case for lending to MSME sector in a structured manner. With the advent of disruptive digital technologies in the banking space, synergies can be developed to digitize big data usage, and its application in underwriting SME-specific product programs, procedures, and digital delivery channels.”
SMEs play a vital role in Pakistan’s economy, contributing 30 percent to the GDP and employing 90 percent of its non-agricultural workforce, but many still struggle to access funding. By adopting best practices in supply chain finance, banks can maximize their reach and expand access to finance in this critical market segment. Bank Alfalah recognizes the key role SMEs play in Pakistan’s economy, and has developed a long term strategy to target the segment as a major business opportunity. In its continuous commitment to provide sustainable solutions, Bank Alfalah has also initiated various financial and non-financial programs to improve financial inclusion for SMEs.
“IFC will leverage its global experience and local knowledge to help Bank Alfalah adopt best practices in Supply Chain Finance,” said Rachel Freeman Manager IFC Financial Institutions Group East Asia and Pacific
The agreement is part of ongoing efforts by the World Bank Group to boost financial inclusion globally and achieve universal financial access by 2020. Pakistan is a priority country for IFC. During the last three years, IFC has ramped up its investments and
Advisory-services work in the country, helping to support the development of Pakistan’s private sector. The organization has focused on mobilizing investments in power and infrastructure, and providing access to finance to micro, small and medium enterprises through financial intermediaries.