The Securities and Exchange Commission of Pakistan (SECP) has approved a new Shariah-compliant digital financing facility aimed at helping small business owners access formal financing more easily.
Under the new initiative, eligible entrepreneurs will be able to apply for financing of up to Rs. 3 million through the “Shamil Kar Tajir” digital application. The facility is designed to simplify the financing process and provide small businesses with another option when traditional banking facilities are difficult to access.
Through the digital system, approved business owners will be able to use the financing to purchase business goods from registered suppliers. This will allow entrepreneurs to meet their business needs through a digital process instead of relying entirely on conventional financing procedures.
The SECP said the initiative is intended to bring more small businesses into the formal financial system. Many small entrepreneurs face difficulties in obtaining credit because of limited access to banking services or lengthy financing procedures.
The new facility will operate according to Shariah-compliant principles. Eligible applicants will be able to complete the financing process digitally, while purchases will be made through approved suppliers within the system.
SECP Chairman Dr. Kabir Ahmed Sidhu said digital distribution channels can play an important role in expanding financing opportunities for businesses that have limited access to credit. He also highlighted the importance of consumer protection as digital financial services continue to expand.
The regulator has also pointed to the growing role of non-banking companies in providing financing to small businesses. According to the SECP, these companies provided Rs. 253 billion in financing to small businesses during the previous year.
Around 2.5 million people also received financing support for small businesses during the same period. The figures highlight the demand for financial services among entrepreneurs and small business operators.
The SECP said digital solutions could further improve financial inclusion by making financing services more accessible. The regulator is also focusing on responsible lending and consumer protection to ensure that the expansion of digital financing does not come at the expense of borrowers.
The “Shamil Kar Tajir” app-based facility is part of wider efforts to promote digital financial services and improve access to formal credit in Pakistan. For eligible entrepreneurs, the initiative provides another channel to obtain financing and purchase essential business goods through registered suppliers.
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