Smeda, Akhuwat Join Forces To Empower Micro Enterprises

Islamabad: The Small and Medium Enterprises Development Authority (SMEDA) and Akhuwat Islamic Microfinance (AIM) have partnered to bolster micro-enterprises in Pakistan, aligning with Prime Minister Shehbaz Sharif’s vision for inclusive economic expansion. The agreement, signed by SMEDA CEO Socrat Aman Rana and AIM Founder/Chairman Dr. Amjad Saqib, aims to improve access to funding, formalization, and guidance for these businesses.

Federal Secretary Industries and Production Saif Anjum emphasized the importance of micro, small, and medium enterprises (MSMEs) to Pakistan’s economy, highlighting their role in job creation and innovation. He stated that MSMEs are a central focus of the Prime Minister’s agenda, and a steering committee has been established to address their challenges.

Rana described the partnership as a significant stride towards the Prime Minister’s goal of a robust and equitable entrepreneurial environment. He emphasized SMEDA’s dedication to strengthening small businesses through capacity development and regulatory improvements. He acknowledged Special Assistant to the Prime Minister Haroon Akhtar Khan’s crucial support in facilitating the collaboration. Rana highlighted the expansion of microfinance to nearly 12 million borrowers, with a portfolio of around PKR 644 billion, noting that 46% of these borrowers are women. However, he stressed that access to formal financing remains a major obstacle for many MSMEs.

Saqib expressed AIM’s dedication to the agreement’s goals, confident it would facilitate easier access to financing for micro-enterprises. He recognized their significance in poverty reduction through employment creation and anticipated that the partnership would stimulate sustainable growth in the sector, contributing to the national economy. He also expressed appreciation for the government’s support in formulating a strategy to help small businesses access available benefits and financial incentives.