Lahore: In a strategic move to enhance the accessibility of bank loans for Small and Medium Enterprises (SMEs), the Small and Medium Enterprises Development Authority (SMEDA) has launched a new program in collaboration with banking institutions, starting with an agreement signed today with Askari Bank Limited.

According to Small and Medium Enterprise Development Authority, the agreement, forged at SMEDA’s headquarters, marks the beginning of a series of partnerships aimed at addressing the declining rate of SMEs securing bank loans, which has fallen from 8.5% to 6% over the past five years. The ceremony saw the presence of SMEDA CEO Socrates Aman Rana and Hussain Ali Haider, Country Head of Askari Bank Limited’s SME Division, among other dignitaries.

This initiative follows directives from the Federal Minister for Industries and Production, Rana Tanveer Hussain, and the Federal Minister of Finance, Senator Muhammad Aurangzeb, reflecting the government’s high-priority agenda to foster SME development. The program is designed to facilitate easier loan acquisition for SMEs by leveraging SMEDA’s regional offices and help desks to spread awareness of concessional government financing schemes and Askari Bank’s SME products.

Moreover, SMEDA will work closely with Askari Bank to enhance SMEs’ capacities in business development and assist them through the loan application process, thereby increasing the issuance of loans. Askari Bank has committed to sharing details about its priority sectors and the conditions of SME loans with SMEDA, which will aid in tailoring support to the specific needs of SMEs.

The next step in SMEDA’s broad engagement with banks will involve a similar agreement with the Bank of Punjab, anticipated to be signed shortly, further expanding the reach and impact of this significant initiative.