Standard Chartered and IFC Expand Trade Finance Program to $400 Million

Karachi: Standard Chartered Bank Pakistan and the International Finance Corporation (IFC) are planning to expand their Risk-Participation Facility to $400 million from the current $200 million, aiming to enhance access to trade finance for local businesses.

According to a statement by Standard Chartered Bank, this enhanced facility will allow the bank to continue supporting short-term trade and working capital needs for major local corporations and exporters in Pakistan. The initiative is part of a broader collaboration between IFC and Standard Chartered, focusing on export-based and large-scale manufacturing industries.

Rehan Shaikh, CEO of Standard Chartered Pakistan, highlighted the significance of the agreement, describing it as a pioneering effort between the two entities. The bank, with its extensive presence across Asia, Africa, and the Middle East, sees this collaboration as a way to expand access to capital and facilitate global trade.

Momina Aijazuddin of IFC emphasized the importance of supporting small and medium enterprises (SMEs) in Pakistan, noting that although SMEs contribute significantly to the country’s GDP, only a small fraction have access to formal credit. By enhancing the Risk Participation Facility, both organizations aim to bolster the growth of SMEs and export-driven sectors with necessary working capital.

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