Small and Medium Enterprises Development Authority (SMEDA) and FATA secretariat on Monday signed a Memorandum of Understanding (MoU) under the WB funded project for "Economic Revitalisation in Khyber-Pakhtunkhwa and FATA" (ERKF)
Abid Majeed, Secretary Admin and Co-ordination FATA Secretariat and Javad Khattak Provincial Chief SMEDA formally signed the agreement of a total worth USD 20 million, out of which USD 7 million will be granted for FATA component to target entire FATA region including six FRs. The project would be completed within next three years by the end of December 2014.
The authority had already reached an agreement with Khyber-Pakhtunkhwa government for floods and insurgency-hit economic condition of the province. The World Bank administered Economic Revitalisation of Khyber-Pakhtunkhwa and FATA Project that is funded through the Multi Donors Trust Fund (MTDF).
The sub-components of the project are rehabilitation, up-gradation of Small Medium Enterprises (SMEs) and provision of business development services to the SMEs affected by the crisis. These sub-components intend to address the core needs highlighted in the recent Post Crisis Needs Assessment (PCNA).
FATA component of the project will aim to economically revitalise crisis-affected SMEs, encourage investment in private sector, support public private partnership and develop long-term institutional underpinning for growth through capacity building of public sector institutions to foster investment, implement regulatory reform, strengthen market mechanism, support data collection and tap into the domestic and international diasporas' network.
Local Economic Departments (LEDs) will be set-up through these grants to support industrial organisations and identify failures in the dimensions of infrastructure, institutions, regulation and information/technology. These aimed efforts will consequently facilitate bringing economic rehabilitation, prosperity and peace in FATA through generating employment opportunities and sustainable jobs for the people of FATA. The anticipated key economic sectors for FATA region are marble, granite, furniture, construction, tourism and horticulture.
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