ISLAMABAD: The US government has investing Rs 15.6 billion in small and medium-sized business in partnership with three investment funds under the Pakistan Private Investment Initiative (PPII) programme.
Under the Pakistan Private Investment Initiative (PPII) a programme of the US agency for International Development (USAID), the US is capitalizing on the expertise of these investment funds to make investments decision that will, spur economic growth and generate profits for investors.
The USAID mission director for Pakistan John Groarke announced here Thursday that all three private equity funds established under the PPII are making investments.
He said, PPII design is unique in partnering with local investment firms to support the SME sector to growth and thrive, with the matching contribution from the three partner investment firms.
PPII is eventually going to make more than 15.6 billion Pakistani Rs in equity financing available to selected SMEs, this clearly demonstrates the interest of private equity firms and the value of investing in Pakistan, he added.
John said, United States is the largest trading partner for Pakistan, with total bilateral trade volume of Pakistan’s annual exports now find a market, and there is potential to further enhance these trades volume and partnership initiatives .
The PPII consists of the Abraaj Fund, the Pakistan Catalyst Fund and the Boltoro Growth Fund , these professionally managed investment funds provide equity capital for Pakistan’s fast-growing small and medium-sized business. The USAID progeramme has provided Rs 2,496 million for each fund, for a total contribution of nearly 7.5 billion Pakistani Rs and the three funds have each matched or exceeded the USAID contribution.
Speaking at the event Executive Director Securities and Exchange Commission of Pakistan Aamir Khan, expressed his gratitude to the USAID for developing an innovative solution that will help small and medium sized enterprises SMEs which are vital to Pakistan’s economic growth and key to its long term Stability. Chief Executive Officer Pakistan Catalyst Fund, Asad Shafqat said, The SME sector can be a tremendous engine for employment and GDP growth in Pakistan”.
Chief Executive Officer Baltoro Fund Ali Saigol said, “The Pakistan Private Investment Initiative has successfully aligned USAID’s development objective with private investor interests, thus establishing a sustainable platform that will support SME growth for decades to come, We hope this will serve as a temple for future public-private partnership.”
