SMEs in Sindh, Balochistan’s horticulture, livestock sectors: GRASP hosts insurance policies issuance ceremony

KARACHI: European Union funded “Growth for Rural Advancement and Sustainable Progress” (GRASP) hosted insurance policies issuance ceremony which marked as a transformative achievement in its mission to empower SMEs in Sindh and Balochistan’s horticulture and livestock sectors.

The event convened influential voices from across sectors including Rana Mashhood Ahmad Khan, Chairman Prime Miniter’s Youth Program, Nadir Gul Barech, CEO Pakistan Poverty Alleviation Fund and Rizwan Hussain, Managing Director and CEO Salaam Takaful and Wajahat Khwaja, Executive Director and Head of Strategic Initiatives Salaam Takaful.

The Access to Finance (A2F) initiative is implementing a dual strategy of Matching Grants and financial sector linkages to support MSMEs. Engaging with 24 Financial Institutions (FIs), the initiative aims to offer viable products, extend credit outreach, and facilitate crop and livestock insurance.

To date, the initiative has disbursed 127 loans worth PKR 418 million, focusing on mitigating agricultural risks in Sindh and Balochistan through insurance. In collaboration with PPAF GRASP Partner Salam Takaful, the project targets sustainable agricultural growth. It has distributed 25 insurance policies covering 328 acres, valued at PKR 27 million, aiming to improve the financial health and socio-economic conditions of the farming community. This milestone underscores GRASP’s unwavering commitment to mitigating climate-related risks in the critical agricultural regions of Sindh and Balochistan.

Talking about risks and impact of natural calamities on SMEs and possible benefits of insurance policies Rizwan Tariq, Provincial Lead (Sindh) International Trade Centre said“ Climate change has become a reality which we must accept and has paralysed small farmers. Earlier those hit by natural calamities till date have not been able to revive their businesses. These insurances will help GRASP supported SMEs to cover their losses in unforeseen situation.”

Nadir Gul Barech, CEO PPAF, provided invaluable insights into the essential role of crop and livestock insurance. Speaking at the occasion he said“The rate of catastrophes is really high in Pakistan. During these times, insurance policies become crucial for small farmers for their business stability. We are dedicated to empowering farmers in Sindh and Balochistan fostering sustainable agricultural growth. The successful implementation of the insurance scheme will prove to be a cornerstone in improving not only the financial health of farming community but also other linked socioeconomic conditions.”

Wajahat Khwaja, Executive Director and Head of Strategic Initiatives talked about the financial product. He said “These insurance policies are designed specifically for agribusinesses. With this, Salaam Takaful will directly stay in touch with the farmers, personally and also via app, to keep them informed on how their policies are maturing, weather forecast and to share precautionary measures in case of weather change.”

Rana Mashhood Ahmad Khan, Chairman Prime Minister Youth Development Programand chief guest, underscored the vital importance of initiatives like GRASP in fostering sustainable agricultural practices and uplifting rural communities. At this occasion he said, “Pakistan’s prosperity is by rural SMEs, you are helping in bringing economic stability to Pakistan. Initiatives like GRASP are groundbreaking and have set an unprecedented example. Government of Pakistan and Prime Minister’s Youth Program will support in its expansion as well as outreach.”

GRASP’s initiative addresses the urgent challenge of climate change in Sindh and Balochistan, regions where a documented 10% increase in extreme weather events has significantly impacted agricultural productivity and rural livelihoods. Through its innovative and strategic initiatives under the Access to Finance (A2F) component, GRASP with the support of Financial Institutions aims to mitigate these risks, fostering resilience and sustainable growth for SMEs and local communities in Pakistan.

Copyright Business Recorder, 2024