The Securities and Exchange Commission of Pakistan has cleared a Shariah-compliant digital financing facility under which small businesses can access financing of up to Rs. 3 million through a mobile application.
Through the new facility, small business owners can use the “Shamil Kar Tajir” app to secure financing for purchasing business-related goods from approved suppliers.
The SECP said the digital financing facility would give small businesses greater access to the formal credit system, particularly those that have previously been unable to obtain financing.
SECP Chairman Dr. Kabir Ahmed Sidhu said digital channels could make financing more accessible to businesses that have traditionally faced difficulties in securing credit. He said the regulator was also giving attention to consumer protection as digital financing services continue to expand.
The SECP reported that nonbanking companies extended Rs. 253 billion in financing to small businesses during the past year. It added that 2.5 million people received small-business financing over the same period.
