SECP approves Shariah-compliant digital financing of up to PKR 3mn

The Securities and Exchange Commission of Pakistan (SECP) has approved a Shariah-compliant digital financing facility allowing small businesses to access up to PKR 3 million through the Shamil Kar Tajir application, the regulator said Friday.

The facility will enable business owners to obtain financing to purchase supplies from approved suppliers, according to the SECP.

SECP said the initiative is intended to bring small businesses with limited access to financing into the formal credit system.

How will the Shamil Kar Tajir financing facility work?

Small business owners will be able to apply digitally for Shariah-compliant financing of up to PKR 3 million through the Shamil Kar Tajir application.

The financing can be used to purchase business supplies from approved suppliers, allowing eligible businesses to access formal credit through a technology-based channel.

SECP Chairman Dr. Kabir Ahmed Sidhu said digital distribution channels could expand financing to businesses that have traditionally remained underserved by formal financial institutions.

“We are not only expanding digital financing but also ensuring consumer protection,” Sidhu said.

How much financing are non-bank companies providing?

Non-bank financial companies provided PKR 253 billion in financing to small businesses over the past year, according to SECP.

Around 2.5 million people received financing for small businesses during the same period, the regulator said.

SECP said the digital financing initiative is aimed at broadening financial inclusion and making formal financing more accessible to small businesses through technology-based channels.