In a strategic move to bridge Pakistan’s SME financing gap, Karandaaz Pakistan, Accelerate Prosperity (AP)—an initiative of the Aga Khan Development Network (AKDN)—and Parwaaz Financial Services Limited (PFSL) have announced a new partnership aimed at expanding access to finance for underserved businesses, particularly women-led enterprises, climate-tech startups, and innovation-driven ventures.
The collaboration targets a crucial segment of the economy: businesses that are too large for traditional microfinance but still viewed as high-risk by commercial banks. By aligning their strengths—Karandaaz’s development finance expertise, AP’s capital and support for early-stage enterprises, and PFSL’s adaptive lending frameworks—the partners aim to catalyze inclusive economic growth and drive financial empowerment.
“This collaboration empowers us to meet the distinct needs of women-led and climate-focused businesses with flexible, inclusive financial products,” said Javed Iqbal, CEO of PFSL.
Akhtar Iqbal, CEO of the Aga Khan Foundation Pakistan, stressed the importance of innovative financing solutions to strengthen Pakistan’s entrepreneurial ecosystem, while Waqasul Hasan, CEO of Karandaaz, reaffirmed the critical role of small businesses in driving innovation and resilience.
International development partners also voiced strong support. Henrietta Hamilton from the UK’s Foreign, Commonwealth and Development Office (FCDO) welcomed the initiative as a benchmark for inclusive and climate-resilient growth. Similarly, Sebastian Jacobi of KfW recognized its significance for Pakistan’s evolving startup landscape.
This multi-stakeholder effort stands to unlock new financing pathways for emerging sectors and marginalized entrepreneurs, supporting a more dynamic, inclusive, and sustainable future for Pakistan’s economy.
