LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) and the Pakistan Banks’ Association (PBA) signed a Memorandum of Understanding (MoU) to enhance 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.
The event was attended by key dignitaries, including Federal Secretary for Industries and Production Saif Anjum, SMEDA CEO Socrat Aman Rana and PBA Chairman Zafar Masud. Business leaders from prominent banks, including HBL, BOP, and JS Bank, along with the financial services team from SMEDA’s B&SDS Division and senior officials from both organisations, were also present.
This collaboration aims to empower SMEs by improving their access to financing through joint initiatives such as capacity building, information sharing, and research on SME clusters and sectors. It also focuses on promoting awareness of government-subsidised financing schemes, enhancing financial literacy, and advocating for SME-friendly policies. The partnership seeks to improve financial inclusion, particularly for women entrepreneurs, through targeted financial literacy programmes.
Speaking at the event, Federal Minister Rana Tanveer Hussain discussed the pivotal role of SMEs as the backbone of Pakistan’s economy, driving resilience, employment and innovation. He acknowledged the barriers SMEs face in securing financing due to limited financial literacy and advisory support. He said, “This partnership between SMEDA and financial institutions aims to address these challenges through shared resources, knowledge and expertise. The strategic alliance between the PBA and SMEDA reflects our commitment to empowering SMEs by fostering financing opportunities, capacity building, and integrating them into the formal financial system.”
The minister appreciated SMEDA’s efforts in training, advisory and advocacy services for SMEs and lauded the PBA’s contributions to financial inclusion and SME financing through its member banks. He expressed hope that the partnership would unlock new opportunities for SMEs in Pakistan, urging both organisations to diligently achieve the objectives outlined in the MoU. He assured the full support of the Ministry of Industries and Production for the initiative. Federal Secretary Saif Anjum commended the partnership as a significant step towards strengthening the country’s SME ecosystem. He highlighted the importance of mutual commitment and shared responsibility in improving SME access to finance. “This collaboration is a major milestone that will help foster a more efficient SME sector, and the ministry will provide full support to ensure its success,” he remarked. Earlier, Aman Rana welcomed the participants and underscored the objectives of the MoU. He noted that SMEs contribute 40 per cent to Pakistan’s GDP, 25 per cent to overall exports, and provide 78 per cent of non-agricultural employment. Despite this, he pointed out, limited access to formal financing remains a significant challenge, particularly in underserved and marginalised areas. He expressed optimism that the MoU with the PBA would address these challenges through regular reviews and close collaboration between the two organisations. Zafar Masud reiterated the association’s commitment to achieving the MoU’s objectives. “The PBA is confident that this collaboration with SMEDA will simplify and enhance access to financing for the SME sector, a key priority for the banking industry and a critical driver of Pakistan’s economic development,” he said.
The partnership is expected to pave the way for a more inclusive and supportive financial ecosystem, enabling SMEs to thrive and contribute more effectively to economic growth.