Lahore: In a significant move to enhance the microfinance landscape in Pakistan, the Small and Medium Enterprises Development Authority (SMEDA) and Mobilink Microfinance Bank Limited (MMBL) have signed a Memorandum of Understanding (MoU). This collaboration aims to provide crucial financial support and development services to micro-level businesses across the country.
Haroon Akhtar Khan, the Special Assistant to the Prime Minister on Industries and Production, underscored the importance of this initiative, highlighting that for the first time, micro-enterprises in Pakistan will have access to government financial schemes. The MoU was signed at SMEDA's head office, with SMEDA CEO Socrat Aman Rana and MMBL President and CEO Haaris Mahmood Chaudhry officiating the agreement. Federal Secretary Industries and Production Saif Anjum was also in attendance.
Khan spoke about the government's commitment to fostering a business environment where micro, small, and medium enterprises (MSMEs) can thrive. He pointed out that financial literacy and access to finance remain significant challenges for these businesses. The partnership between SMEDA and MMBL is seen as a pivotal step toward overcoming these hurdles and supporting small businesses in rural and urban areas of Pakistan.
The initiative also focuses on promoting women entrepreneurship, with a separate policy formulated to encourage women's participation in the MSME sector. Khan emphasized the government's efforts to integrate informal sector businesses into the formal economy, enabling them to benefit from government facilitation schemes.
Saif Anjum, Secretary of the Ministry of Industries and Production, expressed optimism that SMEDA will enhance MSME growth by organizing financial literacy and business capacity-building programs. MMBL will work closely with SMEDA to connect MSMEs with growth opportunities and provide training and advisory support.
Socrat Aman Rana, CEO of SMEDA, highlighted that the current microfinance portfolio stands at over Rs. 650 billion, with a significant portion contributed by Microfinance Banks. He emphasized that the partnership with MMBL will further empower Pakistan's micro and small enterprises by enhancing financial literacy and access to finance.
Haaris Mahmood Chaudhry, President and CEO of MMBL, stated that empowering SMEs is essential for Pakistan's socio-economic growth. The collaboration with SMEDA will focus on training, digital finance, and access to credit, aiming to build a robust ecosystem that supports small businesses and drives sustainable economic progress.