The Securities and Exchange Commission of Pakistan (SECP) has approved a new Shariah-compliant digital financing facility aimed at helping small businesses access formal financing through a digital platform. The facility will allow eligible small business owners to obtain financing of up to Rs3 million through a digital application, providing a technology-based route for businesses seeking funds for their operational and supply requirements.
The newly approved facility will operate through the “Shamil Kar Tajir” app, which is designed to connect small businesses with financing for the purchase of business supplies from approved suppliers. Under the arrangement, businesses will be able to use the digital platform to obtain financing for their procurement needs, bringing the financing process into a more technology-driven and accessible environment. The SECP said the initiative is intended to expand access to the formal credit system for small businesses that have traditionally faced difficulties in obtaining financing through conventional channels.
The introduction of the digital financing facility also reflects the growing role of technology in expanding access to financial services for smaller businesses. By using a digital application as the distribution channel, the facility is expected to make financing more accessible to business owners who may otherwise remain outside the formal credit system. The SECP said digital distribution can help reach businesses that have previously been excluded from formal sources of credit, while the Shariah-compliant structure provides an alternative financing option for businesses seeking funding under Islamic financing principles.
SECP Chairman Dr. Kabir Ahmed Sidhu said the digital distribution model would help extend financing to businesses that have previously been unable to access formal credit. He also highlighted the importance of protecting customers alongside the expansion of digital financing. “Along with expanding digital financing, we are also ensuring consumer protection,” Dr. Kabir Ahmed Sidhu said, pointing to the regulator’s focus on combining wider access to financing with safeguards for users of digital financial services.
The SECP’s latest initiative comes as non-banking companies continue to play a significant role in providing financing to small businesses across Pakistan. According to data shared by the commission, non-banking companies provided Rs253 billion in financing to small businesses over the past year. The figure highlights the scale of financing already being delivered through non-bank financial channels and the potential for digital platforms to further expand access to such services.
During the same period, 2.5 million people received financing for small businesses, according to the SECP. The number reflects substantial demand for financing among small business owners and individuals involved in small-scale commercial activities. The new digital facility is expected to build on this existing financing activity by providing another channel through which businesses can seek funds for approved business supplies.
The approval of Shamil Kar Tajir adds a digital financing option specifically focused on the needs of small businesses while maintaining a Shariah-compliant structure. With financing of up to Rs3 million available through the application, the facility is positioned to support businesses requiring funding for supplies from approved suppliers. The SECP’s emphasis on consumer protection alongside digital distribution also indicates that the initiative is being introduced with attention to both accessibility and safeguards within the formal financing system.
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