The US government is investing more than Rs. 15.6 billion in Pakistan’s small- and medium-sized enterprises (SMEs), under the Pakistan Private Investment Initiative (PPII).
U.S. Agency for International Development (USAID) announced PPII in 2013 with the Abraaj Group and JS Private Equity Management. PPII is an amalgamation of three professionally managed investment funds namely Abraaj Pakistan Fund, Pakistan Catalyst Fund, and Baltoro Growth Fund. These three funds, in partnership with USAID, provide equity capital to SMEs in Pakistan.
Under PPII, the US capitalizes on the expertise of investment funds to make economic decisions that will generate profits for investors and stimulate economic growth. USAID Mission Director for Pakistan John Groarke said,
“The PPII design is unique in partnering with local investment firms to support the SME sector to grow and thrive. With the matching contributions from the three partner investment firms, PPII is eventually going to make more than 15.6 billion Pakistani rupees in equity financing available to selected SMEs. This clearly demonstrates the interest of private equity firms and the value of investing in Pakistan.”
Until now, USAID has provided a total contribution of approximately Rs 7.5 billion to all three funds and they have matched or exceeded the contribution.
“The SME sector can be a tremendous engine for employment and GDP growth in Pakistan,” said CEO Pakistan Catalyst Fund, Asad Shafqat.
Ali Saigol, CEO of the Baltoro Fund said, “The Pakistan Private Investment Initiative has successfully aligned USAID’s development objectives 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 template for future public-private partnerships.”
PPII supports promising businesses with growth prospects and invests in them to expand their market share, innovate product and service lines, and ultimately create jobs and increase incomes.
Source: Dawn
