LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) has initiated efforts to improve the bankability of SMEs to facilitate easier and expanded access to financing.
This is in line with directives from Federal Minister for Industries Rana Tanveer Hussain and Federal Minister for Finance Senator Muhammad Aurangzeb.As a first step, SMEDA signed a Memorandum of Understanding (MOU) with Askari Bank Limited on Wednesday at SMEDA’s headquarters. The MOU was signed by SMEDA’s CEO Socrat Aman Rana and Country Head of the SME Division at Askari Bank Limited Hussain Ali Haider.
The event was also attended by GM of Business and Sector Development Services Ashfaq Ahmad; DGM of B&SD Farah Yasir; DGM of External Relations Sheharyar Tahir; and the assistant manager of financial services from SMEDA.
From Askari Bank, the country head of the SME Division was accompanied by Regional Head of SME Central Syed Nauman Sajid and Senior Credit Head of SME Awais Tahir.
In his address at the signing ceremony, Aman Rana stated that the government is committed to enhancing SMEs’ bankability to boost their access to government financing schemes and specialized financial products.
Despite the critical role of SMEs in job creation, innovation, and economic diversification, private sector lending to SMEs has decreased from 8.5 per cent to 6.0 per cent over the past five years, with the total outstanding portfolio stagnant at Rs543 billion.
Rana expressed confidence that the collaborative plan developed by SMEDA and the banking industry would significantly boost private sector lending to SMEs.Hussain Ali Haider remarked that through collaboration with SMEDA, the bank aims to improve SME lending.
Under this MoU, SMEDA will use its regional offices and helpdesks to spread information and raise awareness about government financing schemes and Askari Bank’s SME products. SMEDA will extend its capacity-building initiatives for SMEs in areas such as accounting, bookkeeping, marketing, and technical advice.
SMEDA will also assist SMEs that approach its helpdesks with the application process for government financing schemes and Askari Bank’s SME products. The organization will share relevant research and reports with Askari Bank.
