This paper is a Policy Analysis Exercise by students at the John F. Kennedy School of Government, Harvard University. This research was supported, in part, by the Ash Center for Democratic Governance and Innovation at Harvard Kennedy School.
The U.S. Department of State’s Coordinator for Economic and Development Assistance in Pakistan has proposed the creation of a Pakistan Private Investment Initiative (PII), to be implemented by USAID, as an alternative to a legislated Enterprise Fund. This study surveys a range of potential options for designing the PII and proposes a model that, the authors believe, is best suited to increase access to finance for promising SMEs and to foster job creation and long-term economic growth in Pakistan. (This paper hereinafter refers to this collaboration between the Department of State and USAID simply as ‘State,’ and to the Pakistan Private Investment Initiative as the PII, ‘the fund,’ or ‘the initiative.’) State has already expressed a possible interest in partnering with the Small Enterprise Assistance Funds (SEAF), as one component of the PII — this paper's recommendations account for and accommodate this proposal.