LAHORE: The Small and Medium Enterprises Development Auth ority (SMEDA) and Pakistan Banks’ Association (PBA) inked a Memorandum of Understanding (MoU) to enhance access to finance for the growth and sustainability of the SMEs today in the presence of the Federal Minister Industries and Production Rana Tanveer Hussain at SMEDA Head Office.
The event was attended by Saif Anjum, Federal Secretary MoIP, Socrat Aman Rana, CEO SMEDA, and Zafar Masud, Chairman PBA, along with business heads from HBL, BOP and JS Bank. Financial Services team from B&SDS Division SMEDA and other senior officials from both organisations were also present on the occasion.
The partnership aims to empower SMEs by enhancing their bankability through joint initiatives, including capacity building, information sharing, and research on SME clusters and sectors. The collaboration also focuses on raising awareness about government-subsidized financing schemes, improving financial literacy, and advocating for policies that support SME growth. Additionally, efforts will also include enhancing financial inclusion by improving women entrepreneurs’ access to finance through financial literacy programs.
Commenting on the partnership, Federal Minister Rana Tanveer Hussain said that SMEs, as a backbone of Pakistan’s economy, are fostering economic resilience, employment, and innovation in the country. He observed that SMEs face hurdles in access to financing due to a lack of financial literacy and advisory support. He stated, “The partnership of SMEDA with financial institutions aims to address these challenges through shared resources, knowledge, and expertise. This strategic alliance between PBA and SMEDA demonstrates our dedication to empowering SMEs by fostering financing opportunities, enhancing capacity building, and establishing a strong ecosystem to bridge financial gaps and integrate SMEs into the formal financial system.”
The Minister appreciated SMEDA’s efforts in training, advisory, and advocacy, of SMEs and also commended PBA’s efforts in financial inclusion and SME financing through its member banks. He hoped that the synergy created through the partnership between SMEDA and PBA would unlock new opportunities for the SMEs in Pakistan.
However, he urged SMEDA and PBA to diligently achieve the objectives outlined in the MoU. He assured that the Ministry of Industries and Production would fully support this collaboration to strengthen the SME sector.
Federal Secretary Industries and Production Saif Anjum, in his address, appreciated the collaboration adopted by SMEDA and PBA for promoting SME financing.
He termed the MoU a major step forward in strengthening Pakistan’s SME ecosystem and hoped that both organizations would focus on improving SMEs’ access to finance through mutual commitment and shared responsibility. He assured to extend the fullest support from the Ministry of Industries and Production to bring positive outcomes of SMEDA and PBA’s partnership for enhancing SME financing.
Earlier, CEO SMEDA Socrat Aman Rana welcomed the guests and highlighted objectives of the SMEDA-PBA MoU. He informed that SMEs contribute 40% of the GDP of Pakistan and 25% of overall exports, besides providing 78% of non-agriculture sector employment.
However, access to formal finance has been a major barrier to SME growth, particularly in underserved and marginalized areas; he added and said that the MoU with PBA is a positive start to meet this challenge that would be maintained with regular reviews and close collaboration of the two organizations for enhancing SME support.
Copyright Business Recorder, 2024
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