Under the Pakistan Private Investment Initiative (PPII) programme, the US government in collaboration with three private investment funds is investing Rs 15.6 billion in small and medium-sized enterprises (SME).
The Pakistan Private Investment Initiative (PPII) is an initiative of US agency for International Development (USAID). Through the program, the US is capitalizing on the expertise of these investment funds to make investments decisions that will spur economic growth and generate profits for investors.
The USAID Mission Director for Pakistan John Groarke announced today that all three private equity funds established under the PPII are making investments. He added,“the PPII design is unique in partnering with local investment firms to support the SME sector to grow and thrive.With the matching contributions from the three partner investment firms, PPII is eventually going to make more than Rs15.6b in equity financing available to selected SMEs. This clearly demonstrates the interest of private equity firms and the value of investing in Pakistan.”
The PPII consists of the Abraaj Pakistan Fund, the Pakistan Catalyst Fund, and the Boltoro Growth Fund, three professionally managed investment funds that provide equity capital for Pakistan’s fast-growing small- and medium-sized businesses.The USAID program has provided Rs2,496 m for each fund, for a total contribution of nearly Rs7.5 b, and the three funds have each matched or exceeded the USAID contribution.
The CEO of the Pakistan Catalyst Fund, Asad Shafqat said, “The SME sector can be a tremendous engine for employment and GDP growth in Pakistan.”
Ali Saigol, CEO of the Baltoro Fund said, “The Pakistan Private Investment Initiative has successfully aligned USAID’s development objectives with private investor interests, thus establishing a sustainable platform that will support SME growth for decades to come. We hope this will serve as a template for future public-private partnerships.”
