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Lahore, June 21, 2016– Millat Tractors Ltd. (Millat) recently signed a corporate partnership agreement with Karandaaz Pakistan and ORIX Leasing Pakistan Limited (ORIX) to help provide financial access to small and mid-size automotive part vendors in the country. This tripartite arrangement is part of the USD 40 million Corporate Vendor and Distributor Finance Program launched recently by Karandaaz Pakistan and ORIX Leasing. Through this Program, ORIX’s supply chain and distribution channels shall grow considerably. As per the agreement, Millat, along withORIXand Karandaaz Pakistan, shall identify and direct credit to vendors and distributors with good growth potential and sound operating and credit history thus facilitating the 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 Millat’s head office in Lahore.
Mr. Ali Sarfraz, CEO Karandaaz Pakistan commended the partnership and said, “Karandaaz Pakistan in its goal to achieve greater financial inclusion in Pakistan places substantial importance on providing SMEs with enhanced access to finance. This corporate framework agreement with Millat Tractors is further testament to this promise. Their support and commitment to this Program is truly laudable.”
Mr. Asad Azfar, CIO Karandaaz Pakistan highlighted the innovative features of the Program designed to leverage the visibility and influence of apex Corporates on their supply chains to enable cash flow driven term lending to small and mid-size vendors and distributors. Millat Tractors was the pioneer of vendor development in the auto industry in Pakistan and their participation and confidence in the Program is very encouraging and exciting.
S M Irfan Aqueel, CEO Millat Tractors Limited while appreciating the efforts of the sponsors to this program said “Millat being the pioneer of vendor development in Auto industry has always taken lead in creating an enabling environment for development of the SME sector. Easy access to finance will help the SME’s to develop and equip themselves to meet the emerging challenges”.
Mr. Irfan Ahmed, General Manager ORIX Leasing Pakistan appreciated the initiative by Karandaaz for facilitating SME’s access to financial services through corporate linkages. He also thanked Millat for their participation in the program. The program would help the vendors in planning expansion/ upgrading of their production facilities to better serve the industry.ORIX will also have access to a diverse funding source in this arrangement and deeper penetration in the vendor industry.