Lahore, December 7, 2024 – The Small and Medium Enterprises Development Authority (SMEDA) and Pakistan Banks’ Association (PBA) have signed a landmark Memorandum of Understanding (MoU) aimed at enhancing access to finance for small and medium enterprises (SMEs). The signing ceremony, held at SMEDA’s Head Office, was graced by Federal Minister for Industries and Production, Rana Tanveer Hussain.
Key officials in attendance included Saif Anjum, Federal Secretary for Industries and Production, Socrat Aman Rana, CEO of SMEDA, and Zafar Masud, Chairman of PBA. Senior representatives from HBL, Bank of Punjab, and JS Bank, along with SMEDA’s Financial Services team and other high-ranking officials, also participated.
Strategic Partnership for SME Empowerment
The collaboration between SMEDA and PBA seeks to tackle the financing challenges faced by SMEs in Pakistan. The partnership will focus on several critical areas:
- Capacity Building: Conducting joint training and advisory programs to improve SMEs’ financial literacy and bankability.
- Research and Advocacy: Identifying and addressing policy gaps through research on SME clusters and sectors.
- Awareness Campaigns: Promoting government-subsidized financing schemes and financial inclusion programs, particularly for women entrepreneurs.
The ultimate goal is to bridge the financial gaps that hinder SME growth, particularly in underserved regions, and to integrate these businesses into the formal economy.
Federal Minister Highlights SME Sector’s Significance
Speaking at the event, Federal Minister Rana Tanveer Hussain emphasized the critical role of SMEs in Pakistan’s economy. “SMEs are the backbone of our economy, driving employment, innovation, and economic resilience,” he stated. The Minister acknowledged the sector’s challenges, including limited access to finance, and praised the partnership as a step toward addressing these barriers through shared resources and expertise.
He also lauded SMEDA’s efforts in providing training, advisory, and advocacy services to SMEs and commended PBA for its initiatives in financial inclusion and SME financing. “This strategic alliance reflects our commitment to creating a robust ecosystem for SMEs, fostering their growth, and unlocking their potential,” he added.
Commitment from Leadership
Federal Secretary Saif Anjum termed the MoU a significant milestone for Pakistan’s SME sector. He pledged the Ministry’s full support in ensuring the partnership delivers tangible outcomes. “This collaboration marks a major step forward in improving SME access to formal financing mechanisms,” he remarked.
CEO SMEDA Socrat Aman Rana highlighted the economic contribution of SMEs, which account for 40% of Pakistan’s GDP, 25% of total exports, and 78% of non-agricultural employment. However, he acknowledged the sector’s struggle with limited access to formal finance. “This partnership is a positive start in addressing these challenges, and we are committed to regular reviews and collaboration to sustain progress,” he noted.
A Positive Outlook
The synergy between SMEDA and PBA is expected to unlock new opportunities for SMEs across Pakistan, empowering them to overcome financial barriers and thrive. The initiative also aims to create a more inclusive financial ecosystem, fostering innovation and resilience in the SME sector.
Both organizations reaffirmed their dedication to achieving the objectives outlined in the MoU, with support from the Ministry of Industries and Production. This partnership is poised to make significant strides in enhancing the sustainability and growth of SMEs, strengthening Pakistan’s economy as a whole.
