French govt's development agency teams up with Pakistani firms to enhance gender, climate finance

The French government’s development agency, Proparco, has forged a partnership with Pakistani financial firms to bolster women-led businesses and promote green technologies in Pakistan. Announced on Tuesday, this collaboration marks Proparco’s first-ever credit risk guarantee in the country.

Founded in 1977, Proparco focuses on providing financial support to businesses in developing and emerging markets. In Pakistan, it has teamed up with Karandaaz and Parwaaz Financial Services Limited (PFSL) to enhance financing options for small and medium-sized enterprises (SMEs).

The partnership was unveiled during a signing ceremony in Islamabad, which also featured a panel discussion on strengthening gender and climate finance. The event gathered experts and stakeholders to explore the challenges and opportunities in these critical areas.

Karandaaz, in a statement, highlighted the significance of the collaboration, noting that it represents Proparco's inaugural credit risk guarantee in Pakistan.

The organisation has already committed over $4.3 million to fund approximately 90 SMEs through its existing initiatives. The new partnership with Proparco is expected to further expand credit access for small businesses in the country.

French Deputy Head of Mission Guillaume Dabouis voiced his country’s support for the partnership, stating that it aligns with France’s commitment to promoting sustainable economic development and gender equality in Pakistan.

Diane Jegam, Proparco’s South Asia Regional Director, hailed the partnership as a significant move towards unlocking the potential of Pakistani SMEs, particularly those led by women and focused on climate action.

Waqas ul Hasan, CEO of Karandaaz, expressed enthusiasm about the collaboration, emphasising its importance in advancing financing for women-led businesses and scaling up innovative green technologies.