Access to Direct Financing for Businesses in Poultry Industry Made Easier by the UK Funded Karandaaz

Islamabad | May 28, 2019

Improved access to finance for small businesses related to poultry industry in Pakistan has been announced by the UK’s Department for International Development (DFID) funded Karandaaz through a partnership with JSK Feeds Limited.

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 credit worthy 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 support 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 country’s population of ruminants and substantial number of poultry.  Our plant’s strategic location enables us to source the best raw materials and to deliver 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 highest quality control measures and the best manufacturing and bio-security practices to ensure the quality of our products.

Navid Goraya, Chief Investment Officer, Karandaaz Pakistan said,

“pullquote]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[/pullquote].

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 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 source of income to more than 1.5 million people directly and indirectly.With the continuous depletion of supply of red meat and its rising prices, poultry is the cheapest available animal protein source for the masses. Many micro, small and medium businesses operate within this supply chain including farmers, feed manufacturers, suppliers, distributors, transporters, and retailers.

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