The Small and Medium Enterprises Development Authority (SMEDA) and Akhuwat Islamic Microfinance (AIM) have signed a memorandum of understanding (MoU) to strengthen small businesses across Pakistan. This collaboration aligns with the Prime Minister’s vision for broader economic development.
The agreement, finalized between SMEDA CEO Saqrat Aman Rana and AIM Founder/Chairman Dr. Amjad Saqib, aims to improve access to financial resources, government registration, and guidance for these small businesses.
Federal Secretary for Industries and Production Saif Anjum emphasized the government’s focus on Micro, Small, and Medium Enterprises (MSMEs). He mentioned the formation of a steering committee and the restructuring of SMEDA to address MSME hurdles and improve performance. Anjum believes this alliance will bolster microfinancing and skills development, creating a more inclusive financial environment for small businesses.
Rana linked the initiative to the Prime Minister’s goal of fostering a robust and equitable business environment. He highlighted the importance of focused training and simplified regulations for small enterprises. Rana acknowledged the significant growth in microfinancing, benefitting countless borrowers, many of whom are women. Nevertheless, access to conventional financing remains a barrier for many businesses, and the collaboration with AIM seeks to address this challenge.
Saqib affirmed AIM’s commitment to the project’s objectives, which aim to facilitate easier access to capital for small businesses nationwide. He recognized the role of these small ventures in poverty alleviation and economic growth. Saqib anticipates a positive impact of the partnership on the country’s economy.