MOU Signed between InfraZamin Pakistan Limited & Sindh Enterprise Development Fund

InfraZamin Pakistan Limited (IZP) and Sindh Enterprise Development Fund (SEDF) have signed a Memorandum of Understanding(MOU) to evaluate credit enhancement possibilities for infrastructure projects that may be undertaken by SEDF Sindh. The MOU aims to foster economic and social development through provisions of Credit Guarantee facility for innovative projects in Sindh in the areas of Agriculture, Green Energy, Seed Technology and Education.

The agreement signing ceremony was Chaired by Syed Qassim Naveed Qamar, Special Assistant to CM Sindh for Investment Department and PPP Projects. Ms. Maheen Rehman, CEO-IZP and Mr. Khizar Pervaiz, CEO-SEDF signed the Agreement in witness of various officials and dignitaries from public and private sector including Syed Mansoor Abbas Rizvi, Secretary to Government of Sindh-Investment Department, Mr. Abdul Rahim Suriya, former President ICAP and members of the IZP team.

SEDF has been established by the Government of Sindh with a vision to encourage investment in SME sector to inculcate entrepreneurial ability and provide a major push to the wider economy. It aims to promote opportunities in Agri value chains, Horticulture & Floriculture, Green Energy and Innovation & Technology for multiple economic benefits on growth, intermediary services and productivity. It seeks to introduce interventions to improve efficiency and profitability through various initiatives of technical assistance and mark-up subsidies.

InfraZamin is an innovative credit enhancement Company, conceived and designed by the Private Infrastructure Development Group to issue credit guarantees for promoting private sector and public/private partnership infrastructure projects. Focus sectors are Renewable Energy, Water Sewage & Sanitation, Bulk Storage/Logistic Facilities, Digital Communications & Infrastructure, Affordable Housing, Health & Education, and Agricultural Infrastructure.

Under the said MOU, IZP will evaluate the potential to provide Credit Guarantees to banks/other beneficiaries to facilitate project financing, whereas SEDF will provide mark-up subsidy for the same financing to enable access to finance for SEDF pipeline projects. The expected outcome of the collaboration between SEDF and IZP is to create a win-win situation for all stakeholders and create an enabling environment that is conducive for investment opportunities in the Province.

This is a step towards financial inclusion of neglected yet vital segments/sectors of the economy with a focus towards modernization of the rural economy of Sindh and Insha’Allah pave the way for overall growth of Pakistan’s economy.