US Ambassador to Pakistan David Hale, announcing over $100 million for Pakistan's private sector, Thursday lauded Prime Minister Nawaz Sharif's policies towards revitalizing country's economy and meeting international financial benchmark. Ambassador Hale made this announcement at an event here. The US government, in partnership with the Abraaj Group, Indus Basin Holding, and JS Private Equity Management, has made available over $100 million to invest in Pakistan's private sector, through the Pakistan Private Investment Initiative (PPII).
The ambassador described the initiative not only a good step for the private sector, for Pakistan and its economy but also for America, which has a stake in Pakistan's success. "Under Prime Minister Sharif, we feel Pakistan is making progress, revitalizing its economy and meeting international financial benchmark," he added. He said the focus on approved institutions and legal and regulatory reforms has happened to create a robust and vibrant financial sector, boosting investor confidence and this initiative will capitalise on this confidence.
He said the initiative is long-term, which involves the private sector in national development, adding it is part of the broader push to connect the government with a creative, innovative and entrepreneurial community. Ambassador Hale highlighted the importance of public-private sector relationship, saying the productive relationship between the government and entrepreneurs could lead to economic growth in the country.
He noted that the government of Pakistan has significant future goals for the country - fostering economic growth, dealing with the climate change, improving energy security, enhancing regional stability, extending access to education and to finance - we need all hands on deck in Pakistan in order to achieve these goals.
"The good news is that...you are not alone, in order to share these goals, we've programmes to help such as these ones," he said, adding these are global challenges. "Our hope is that, by improving access to credit for first-time borrowers, we will break down barriers for creators and the innovators who will find solutions to the development challenges facing Pakistan and the world," Ambassador Hale said. "I have no doubt that investing in Pakistan's entrepreneurs will pay dividends for decades to come."
US Mission Director John Groarke said that PPII consists of three professionally managed investment funds that provide equity capital for Pakistan's dynamic and fast-growing small- and medium-sized businesses. He said the US Agency for International Development (USAID) has provided $24 million for each fund, and the Abraaj Group, Indus Basin Holding, and JS Private Equity Management will each match or exceed USAID's contribution.
He further said that PPII is an innovative approach to identifying and investing in promising businesses, thereby helping them to expand their market share, introduce new product and service lines, and ultimately create jobs and increase incomes. By working with the Abraaj Group, Indus Basin Holding, and JS Private Equity Management, he said the US government is capitalising on these companies' expertise to make smart investment decisions that will create jobs, spur economic growth, and generate profits for investors.
Chairman Securities and Exchange Commission of Pakistan (SECP) Zafar Hijazi, in his remarks, appreciated the initiative and stated that there was deep understanding on government level to promote Small Medium Enterprises (SMEs), which is significant in the country's economic growth. He said that over three million SMEs are playing an important role in the country's economy.
Deputy Governor, State Bank of Pakistan (SBP) Saeed Ahmad said on the occasion that this initiative will help the SMEs in the country. However, he pointed out the absence of expertise and the lack of strategies to properly utilise the SMEs in the country's economic growth.