UK Funded Karandaaz Made Businesses in Poultry Industry Easier

Improved access to finance for small businesses related to the 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 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.