Meezan Bank recently signed a corporate partnership agreement with Karandaaz Pakistan and Millat Tractors Ltd (Millat) to help provide financial access to small and mid-size automotive part vendors in the country. This tripartite partnership is part of the USD 50 million Corporate Vendor and Distributor Finance Program launched recently by Karandaaz Pakistan and Meezan Bank.
Through this capital investment and expansion working capital financing opportunity, Millat's supply chain and distribution channels shall grow considerably. As per the agreement, Millat, along with Meezan Bank and Karandaaz Pakistan, shall identify and direct credit to vendors and distributors with good growth potential and sound operating and credit history thus facilitating the localisation of automotive parts and broad based employment growth in Pakistan.
Senior representatives from the three partner companies were present at the signing ceremony held at Millat Group office in Lahore. Ali Sarfraz, CEO Karandaaz Pakistan commended the partnership and said, "Karandaaz Pakistan in its goal to achieve greater financial inclusion in Pakistan places substantial importance on providing SMEs with enhanced access to finance. This corporate framework agreement with Millat Tractors is further testament to this promise. Their support and commitment to this program is truly laudable."
Asad Azfar, CIO Karandaaz Pakistan highlighted the innovative features of the Program designed to leverage the visibility and influence of apex corporates on their supply chains to enable cash flow driven term lending to small and mid-size vendors and distributors. Millat Tractors was the pioneer of vendor development in the auto industry in Pakistan and their participation and confidence in the Program is very encouraging and exciting.
S M Irfan Aqueel, CEO Millat Tractors Limited while appreciating the efforts of the sponsors to this program said, "Millat being the pioneer of vendor development in Auto industry has always taken lead in creating an enabling environment for development of the SME sector. Easy access to finance will help the SME's to develop and equip themselves to meet the emerging challenges".
Ariful Islam, Deputy CEO, Meezan Bank while highlighting the importance of financial rationing for SMEs said, "Pakistan's SME sector has the potential to serve as a key competitive source. The performance, nurturing and growth of SMEs however are highly dependent on their access to multiple financing solutions. With Millat's support, this unique program shall have a greater potential to expand, providing small and mid-size vendors with more access to finance."-PR
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