The Securities and Exchange Commission of Pakistan (SECP) has approved a Shariah-compliant digital financing facility for small businesses, allowing entrepreneurs to secure up to Rs3 million through a mobile application, reported 24NewsHD TV channel on Friday.
Under the new arrangement, small business owners will be able to access financing through the “Shamil Kaar Tajir” app to purchase business supplies from approved suppliers. SECP said the facility is designed to give small businesses formal access to credit channels that were previously out of reach for many.
SECP Chairman Dr. Kabir Sidhu said digital distribution would enable lending to businesses that had been excluded from financing, adding that the regulator was expanding digital financing while ensuring consumer protection remained a priority.
According to SECP, non-banking finance companies extended Rs253 billion in loans to small businesses over the past year, reaching 2.5 million people during the period.
Reporter: Waqas Azeem