KARACHI – Pak Suzuki Motor Company has recently signed a corporate partnership agreement with Karandaaz Pakistan and Meezan Bank to help provide financial access to Small and Mid-Size (SME) automotive part vendors in Pakistan. This tripartite agreement forms part of the USD 50 million Corporate Vendor and Distributor Finance Program launched recently by Karandaaz Pakistan and Meezan Bank.
Speaking at the signing ceremony held at Pak Suzuki Motor Company’s Head Office at Karachi, Mr. Hirofumi Nagao, Managing Director Pak Suzuki Motor, deeply appreciated Meezan Bank and Karandaaz Pakistan’s efforts in addressing the unique banking needs of SMEs in Pakistan. He recalled, “In 2007, when the automobile industry was booming, both Pak Suzuki and its local vendors took the initiative of upgrading their facilities to cope up with the demand. The timing of this program is opportune since after a period of 8 years, the automobile industry is again showing positive signs. I believe that this program will help local industry players in upgrading their facilities to respond to the increasing demand.”
Mr. Irfan Siddiqui, President & CEO of Meezan Bank, speaking about the Bank’s strategic commitment to support SMEs, said “SMEs are the main engine of economic growth in Pakistan and a key element in promoting private sector development. The agreement with Pak Suzuki will provide a much needed boost to the automotive sector both through Meezan Bank’s diverse SME banking experience and growth capital to the vendors and distributors that form part of the company’s supply chain. This significant co-financing agreement will also help Meezan Bank move closer to its Vision of establishing ‘Islamic banking as banking of first choice’ by providing innovative Islamic financing solutions and serving as employment generator of our economy.”
Mr. Asad Azfar, CIO Karandaaz Pakistan stressed the importance of this program for SMEs operating in organized supply chains of the economy. “Small businesses have had little access to term finance in Pakistan in the past. By providing capital investment and expansion working capital financing to these vendors and distributors, we expect to see broad-based economic and employment growth in the country. Pak Suzuki’s committment to this program is very encourgaing, and we look forward to signing more apex corporates in the near future.”
About Pak Suzuki
Pak Suzuki Motor Company Limited, established in 1983, is a subsidiary of Suzuki Motor Corporation, Japan and the largest automobiles manufacturers in Pakistan having more than 50% market share since last three decades. The Company is engaged in the manufacturing of both automobiles and Motorcycles at Bin Qasim, Karachi plant with installed capacities of 150,000 units and 44,000 units production per annum with two shifts operation. Pak Suzuki utilizes its large vendor network to enhance the localization of parts by providing them technical trainings, arranging technical audits from Japanese experts and establishing technical assistance from foreign manufactures wherever required. Pak Suzuki has also established Vendors’ Park in the vicinity of its plant for easily communication, quick assistance, reduced logistics and several other benefits. Apart from localization through vendors, the Company has in-house manufacturing capabilities in the areas of Stamping and Injection molding at its production plant.
About Karandaaz Pakistan
Karandaaz Pakistan (www.karandaaz.com.pk), a private company established in August 2014, promotes access to finance for small businesses through a commercially directed investment platform, and financial inclusion for individuals by employing technology enabled digital solutions. The Company has financial and institutional support from leading international development finance institutions; principally UKAid’s Department for International Development (DfID) and the Bill & Melinda Gates Foundation. The Consultative Group to Assist the Poor (CGAP), a member of the World Bank Group, managed the start-up phase of the Company and continues to provide technical support.
The Company has three work streams, Digital Financial Services, Corporate Investment and Credit and Knowledge Management and Communications. The Corporate Investment and Credit line of business of Karandaaz provides wholesale structured credit and equity-linked direct growth capital investments in small and mid-size enterprises with compelling prospects for sustainable growth and employment generation in Pakistan. Karandaaz Pakistan is sponsored and governed by eminent Pakistanis, and is managed by an experienced team with core expertise in international investment management and digital finance.