JSK, an associated concern of the Saif Group, currently procures a considerable portion of its raw material for poultry feed manufacturing from the small farmers. Direct financing through a medium-term loan will enable JSK Feeds to develop its supply chain by funding its small and medium-sized maize crop farmers to purchase farm inputs. These farmers are typically not considered creditworthy by the formal financial sector such as banks. Joanna Reid, Head of DFID Pakistan said, The UK believes that access to finance is a path to economic inclusion and reduction in poverty as well as economic growth for the country. I am delighted that DFID has supported this innovative model to cater to the financing needs of small and medium enterprises and the downstream businesses in their supply chains. DFID Pakistan is committed to supporting inclusive economic growth, higher incomes and sustainable employment opportunities for people in Pakistan. Jehangir Saifullah Khan, CEO JSK Feeds while speaking at the event said, “JSK Feeds’ production unit is located in the Sahiwal Division which has over 40% of the country’s population of ruminants and a substantial number of poultry. Our plant’s strategic location enables us to source the best raw materials and to deliver the highest quality finished products to our customer’s doorstep in a time-saving and cost-effective way. JSK Feeds is at par with international standards by exercising the highest quality control measures and the best manufacturing and biosecurity practices to ensure the quality of our products.” Navid Goraya, Chief Investment Officer, Karandaaz Pakistan said, “This Direct Senior Medium-Term Loan to JSK Feeds Limited will cater to the financing needs of its farmers in the supply chain who don’t have the means and the resources to obtain financing from the commercial banks due to their stringent financing requirements and collateral based lending models. JSK Feeds is currently using internal resources for extending a credit period to the small farmers and in a slow season, this gets extended. This extended credit period puts a strain on the working capital cycle of the farmers hampering their growth potential. The facility extended by Karandaaz is an innovative financing reverse factoring solution in the market for the development of the supply chain.” Ali Sarfraz, CEO Karandaaz, while speaking about the investment said, “Karandaaz will continue to explore alternative delivery channels for enabling funding for credit-starved SMEs. This directed financing pilot programme will set up a new model of providing financing to SME level corporates for supporting other smaller businesses associated with their industry such as farmers, suppliers, distributors, transporters etc. This means we directly trigger growth in a particular sector and indirectly benefit many other associated industries.” According to the Pakistan Poultry Association, commercial poultry in Pakistan is one of the largest agri-segments of Pakistan’s economy, having an investment of more than 750 billion rupees. The poultry industry generates employment and provides a source of income to more than 1.5 million people directly and indirectly. With the continuous depletion of the supply of red meat and its rising prices, poultry is the cheapest available animal protein source for the masses. Many micros, small and medium businesses operate within this supply chain including farmers, feed manufacturers, suppliers, distributors, transporters, and retailers. [END] Note to editor: Karandaaz Pakistan promotes financial inclusion in the country through promoting access to finance for SMEs through commercially directed investments and financial inclusion for individuals through the promotion of digital financial services. Karandaaz also develops and disseminates evidence-based insights, and encourages innovation in financial space. Karandaaz has financial and institutional support from DFID and the Bill & Melinda Gates Foundation.
