PROJECT

Projects

Summary of Advisory Services Project Information

Project Number

604186

Primary Business Area

Financial Institutions Group

Disclosure Date

Jun 29, 2023

Country

Pakistan

Region

Middle East

IFC Approval Date

Jun 6, 2020

Status

Active

Estimated Total Budget

Estimated Total Budget Pending
(Project budget includes all project-funded activities)

Last Updated Date

Jul 4, 2023

Project Estimated Start Date

Jun 6, 2020

Project Estimated End Date

Jun 30, 2024

Project Description

Small and medium-sized enterprises (SMEs) play a crucial role for job creation, and economic growth around the world. Considering this important role and based on the increased awareness on the part of the Government of Pakistan to ensure that viable SMEs in the country have access to the credit in order to expand and achieve aforementioned goals, a full-fledged secured transactions reform is under implementation. The reform focuses on the creation of an appropriate legal framework for secured transactions and the development of an electronic centralized collateral registry for security interests in movable property which will greatly increase private sector access to credit, particularly SMEs, and enhance the financial sustainability of the financial sector in Pakistan. A capacity building and training plan on the reforms undertaken directed to the main group of public and private stakeholders is also envisaged. Significant milestone to the reform by enacted the Secured Transactions Law in 2016 has been achieved and further amendments are in the process of enactment to enhance the legal framework. The law is the first Secured Transactions Law to be enacted in the region in conformity to key best practice principles.

Development Results

E&S Risks / Impacts and Mitigation