ISLAMABAD: The US government, in partnership with three investment funds, is investing Rs15.6 billion in small and medium-sized businesses under the Pakistan Private Investment Initiative (PPII).
As part of the programme, being run by the US Agency for International Development (USAID), the US is capitalising on expertise of the investment funds to make investment decisions, which will spur economic growth and generate profits for investors.
USAID Mission Director for Pakistan John Groarke announced at an event on Thursday that all the three private equity funds, established under the initiative, were making investments.
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He called the PPII design unique that established partnership with local investment firms in order to help the SME sector grow and thrive with matching contribution from the three partner companies.
“PPII is eventually going to make more than Rs15.6 billion of equity financing available to selected SMEs; this demonstrates the interest of private equity firms and the value of investing in Pakistan,” he added.
The United States is the largest trading partner of Pakistan with potential to further enhance the trade volumes and partnership initiatives.
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PPII consists of the Abraaj Fund, Pakistan Catalyst Fund and Boltoro Growth Fund. They provide equity capital for the fast-growing small and medium-sized businesses.
The USAID programme has provided Rs2.496 billion for each fund with total contribution of nearly Rs7.5 billion. The three funds have each matched or exceeded the USAID contribution.
Speaking on the occasion, Securities and Exchange Commission of Pakistan (SECP) Executive Director Aamir Khan praised the innovative solution that would help SMEs, which were vital to Pakistan’s economic growth and key to long-term economic stability.
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