Pak Suzuki Partners with Karandaaz Pakistan and Meezan Bank to Promote SMEs in the Automotive Industry in Pakistan
Pak Suzuki recently signed a corporate partnership agreement with Karandaaz Pakistan and Meezan Bank Limited to help provide access to finance to small and mid-size automotive part vendors in the country. This tripartite partnership is part of the PKR 9 billion Corporate Vendor and Distributor Finance Program launched recently by Karandaaz Pakistan and Meezan Bank. Through this capital investment and expansion working capital financing opportunity, Pak Suzuki’s supply chain and distribution channels are expected to grow. Pak Suzuki will identify and direct credit to vendors and distributors with good growth potential and sound operating and credit history, and facilitate localization of automotive parts and broad based employment growth in Pakistan.
Senior representatives from the three partner companies were present at the signing ceremony held at Pak Suzuki’s head office in Karachi. Mr. Hirofumi Nagao, Managing Director Pak Suzuki deeply appreciated Karandaaz Pakistan’s and Meezan Bank’s efforts in launching this initiative to upgrade small and mid-sized entreprises in Pakistan. He recalled,
In 2007, when the automobile industry was booming, both Pak Suzuki and its local vendors took initiatives in upgrading their facilities to cope up with the demand. The timing of this program is opportune since after a period of 8 years, the automobile industry is showing positive signs once again. I believe that this program will help local industry players upgrade their facilities to respond to the increasing demand.
Mr. Irfan Siddiqui, President & CEO of Meezan Bank, expressed the Bank’s utmost commitment to this financing Program with Karandaaz Pakistan and Pak Suzuki Motors. He stated,
I am delighted that Pak Suzuki has signed this agreement with us. I am confident that with their support, we will be able to provide much needed growth capital to the vendors and distributors that form part of the company’s supply chain. This initiative will be an important step in pursuing the Bank’s vision to establish Islamic banking as a first choice by providing innovative financing solutions to this critical SME sector of the country.
Mr. Asad Azfar, CIO Karandaaz Pakistan stressed the importance of this program for SMEs operating in organized supply chains of the economy.
These small businesses have had little access to finance in Pakistan so far. By providing capital investment and expansion working capital financing to these vendors and distributors, we expect to see broad-based economic and employment growth in the country. Pak Suzuki’s commitment to this program is very encouraging, and we look forward to signing more apex corporates in the near future.
About Pak Suzuki
Pak Suzuki Motor Company Limited, established in 1983, is a subsidiary of Suzuki Motor Corporation, Japan and the largest automobiles manufacturers in Pakistan having more than 50% market share since last three decades. The Company is engaged in the manufacturing of both automobiles and Motorcycles at Bin Qasim, Karachi plant with installed capacities of 150,000 units and 44,000 units production per annum with two shifts operation.
Pak Suzuki utilizes its large vendor network to enhance the localization of parts by providing them technical trainings, arranging technical audits from Japanese experts and establishing technical assistance from foreign manufactures wherever required. Pak Suzuki has also established Vendors’ Park in the vicinity of its plant for easily communication, quick assistance, reduced logistics and several other benefits. Apart from localization through vendors, the Company has in-house manufacturing capabilities in the areas of Stamping and Injection molding at its production plant.
About Meezan Bank
Meezan Bank is the 8th largest bank in Pakistan and the leading Islamic bank of the country. The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 485 branches supported by a countrywide network of over 400 ATMs, Visa Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.
Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. These institutions include Islamic Finance News – Malaysia, Global Finance magazine – New York, Asset AAA – Hong Kong, Asiamoney – Hong Kong, The Banker – United Kingdom and CFA Association – Pakistan.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA (Double A) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank. Meezan Bank is the only Islamic bank with AA credit rating in the Islamic banking industry in Pakistan