Pakistan’s microenterprises and other underserved business segments are set to gain enhanced access to funding following a new collaborative agreement between the Small and Medium Enterprises Development Authority (SMEDA) and the Pakistan Microfinance Investment Company Limited (PMIC).
The understanding, reached during a high-level meeting at the SMEDA Head Office, seeks to bolster financial inclusion and provide crucial support to small businesses across the nation, according to a report today.
The meeting was attended by senior leadership from both organisations. The SMEDA delegation was led by CEO Nadia Jahangir Seth, accompanied by GM Gender and Sustainability Sheharyar Tahir and DGM Financial Services Farah Yasir. CEO Yasir Ashfaq headed the PMIC team, which included Chief Operating Officer Saqib Siddiqui and Head of Corporate Finance and Investment Banking Bilal Abdul Razzaq.
Ms Seth stated that SMEDA manages the non-banking aspects of Micro, Small, and Medium Enterprise (MSME) development, which encompasses business development services, policy input, and facilitating finance access. She noted that this new alliance aligns with the Prime Minister’s vision for SME growth.
“SMEDA is designing focused programmes in collaboration with financial institutions to improve financing opportunities for underserved business segments, particularly women entrepreneurs and microenterprises,” Ms Seth explained, calling for a structured framework to operationalise the joint effort.
Mr Ashfaq of PMIC affirmed his company’s commitment to expanding microfinance services, with a particular emphasis on agriculture, education, climate resilience, and women-led ventures. He stressed the importance of a closer working relationship between the two bodies to achieve the shared objective of strengthening microfinance outreach nationwide.
As a tangible step forward, Mr Ashfaq proposed the two organisations co-host an MSME conference on microfinancing later this year. The event would aim to bring key stakeholders together to foster dialogue on expanding financial access.
Sheharyar Tahir, SMEDA’s GM for Gender and Sustainability, remarked that stronger cooperation with microfinance institutions is essential to effectively meet the financial requirements of the smallest enterprises.
Adding to this, DGM Financial Services Farah Yasir confirmed that SMEDA is already working to improve the financial literacy of MSMEs through a series of training initiatives. These programmes, organised with SME-focused trade bodies, are designed to improve the readiness of businesses to access formal finance.