KARACHI: Aimed at encouraging women participation in the economy, State Bank of Pakistan (SBP) on Tuesday announced to enhance the financing limit under its Refinance and Credit Guarantee Scheme for Women Entrepreneurs from Rs1.5 million to Rs5 million.
According to a press release issued by the central bank, the decision was taken in light of feedback received from various stakeholders about current financing limit being insufficient to cover the financing needs of women entrepreneurs.
“This decision is in line with the government’s policy to support and revive economic activities in the country and SBP’s key objective of improving access to finance for priority segments including women entrepreneurs,” the SBP said.
Initially, in August 2017, the State Bank had introduced Refinance and Credit Guarantee Scheme for Women Entrepreneurs in underserved areas to promote financial inclusion and access to finance for women entrepreneurs in the country.
Subsequently, the scope of the scheme was enhanced to cover entire Pakistan.
Under this scheme, SBP provides refinance to participating financial institutions at zero percent on their financing to women entrepreneurs at the maximum end-user rate of five percent. Moreover, 60 percent risk coverage is also available to the participating institutions.