Thread by @kayzafar

1/ This is tragic! We could possibly lose billions just because as a nation we don't bother with fact-finding before denouncing things that could possibly benefit the country. Irresponsible reporting & poor reaction by the cabinet. Read thread for facts...
tribune.com.pk/story/2277959/…

2/ Years ago, GoP received a grant frm DFID under the Financial Inclusion Program to fund a credit guarantee facility. Grants r issued for a specific purpose. The terms were that if any funds remain unutilized, they'll be returned to DFID or one of its development programs in Pak

3/ Just so happened, that with this program, most of the funds remained unutilized & would need to be returned to DFID in Mar 2021 upon program expiry. Instead, DFID agreed to capitalize Pakistan Credit Guarantee Company (PCGC) to further its original FIP development objectives.

4/ PCGC up until now has been capitalized with a whopping PKR 300 (that's three hundred rupees ONLY). It's essentially an empty company with no assets and virtually no operations. It was originally conceived to offer credit guarantees to SMEs when it ever gets capitalized.

5/ That's the "state asset" (worth Rs 300) that is apparently "being sold" to UK (which is also incorrect). Instead of taking the money back, DFID agreed to move all the grant funds into PCGC & capitalize it north of 90%. The remaining <10% capital was to be contributed by GoP.

6/ Despite contributing less than 10% of the capital, MoF & SBP jointly would own 49% of PCGC. The remaining 51% would be owned by @KarandaazPK, a not-for-profit Pakistani entity also originally funded by DFID and Gates Foundation.

7/ It's important to note that Karandaaz is professionally managed by a board of Pakistanis including past SBP governors and other Pakistani professionals and businessmen. No one, including DFID, Gates Foundation or the board running it, has any claims to its assets or earnings.

8/ Had the txn been approved by the cabinet, the billions would have remained in Pak, would never have to be returned, would have created a credit guarantee company that could allow access to finance for thousands of SMEs.

9/ Moreover, it would allow GoP bragging rights for promoting financial inclusion, and possibly use the proceeds from earnings of PCGC to promote its development agenda directly as well as through Karandaaz, also a development focused not-for-profit enterprise.

10/ I have no idea why this straight forward txn was maligned & the facts were twisted to make it sound like GoP is selling a precious state asset to UK govt. At the end, it's a loss for small Pakistani business owners that need access to capital to grow & create more jobs!

@threader_app compile and share @ImranKhanPTI @Asad_Umar @fawadchaudhry @FinMinistryPak @StateBank_Pak @investinpak @fsherjan @ZarrarKhuhro