Tripartite agreement signed to promote automotive industry

KARACHI: Pakistan Suzuki Motor Company recently signed a corporate partnership agreement with Karandaaz Pakistan and Meezan Bank to help provide financial access to small and medium automotive spare parts vendors in Pakistan.

This tripartite agreement is part of the $50 million corporate vendor and distributor finance programme launched recently by Karandaaz Pakistan and Meezan Bank.

Speaking at the signing ceremony held at Pak Suzuki Motor Company’s head office, Pak Suzuki Motor Managing Director Hirofumi Nagao deeply appreciated Meezan Bank’s and Karandaaz Pakistan’s efforts in addressing the unique banking needs of SMEs in Pakistan. He recalled, “In 2007, when the automobile industry was booming, both Pak Suzuki and its local vendors took the initiative of upgrading their facilities to cope up with the demand. The timing of this program is perfect as the automobile industry is again showing positive signs after a period of 8 years. I believe that this program would help the local industry players in upgrading their facilities to respond to the increasing demand.”

Meezan Bank President and Chief Executive Officer (CEO) Irfan Siddiqui, while speaking about the bank’s strategic commitment to support SMEs, said, “SMEs are the driving force of the country’s economic growth and a key element in developing the private sector. The agreement with Pak Suzuki would provide a much needed boost to the automotive sector both through Meezan Bank’s diverse SME banking experience and distributors that form part of the company’s supply chain. This significant co-financing agreement would also help Meezan Bank move closer to its vision of establishing ‘Islamic banking as the first choice of banking’ by providing innovative Islamic financing solutions and serving as an employment generator of the economy.”

Karandaaz Pakistan Chief Information Officer (CIO) Asad Azfar stressed the programme’s importance for SMEs that operate in the organised supply chains. “Small businesses have had little access to term financing in Pakistan in the past. By providing capital investment to these vendors and distributors, we expect a broad-based economic and employment growth in the country. Pak Suzuki’s committment to this programme is encourgaing and we look forward to sign more apex corporates in the near future.”

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