Karandaaz Pakistan under its third round of Innovation Challenge Fund (ICF) has signed an agreement with Allied Bank Limited (ABL) to support the bank for developing an innovative, cash-flow based, credit scoring model for small and medium enterprises (SMEs). During this annual challenge, Karandaaz had invited ideas from entities interested in developing and testing innovative credit scoring models for SME lending in the country. ABL, the fifth largest bank of Pakistan with ‘AAA’ rating assigned by PACRA, will use this support, including risk sharing, from Karandaaz to design and test its innovative method of calculating credit scores for SME obligors looking to avail credit facility from the bank.