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LAHORE, Jul 05 (APP):In line with Prime Minister Muhammad(PM) Shahbaz Sharif’s inclusive economic vision of promoting grassroots entrepreneurship and financial inclusion,the Small and Medium Enterprises Development Authority (SMEDA) has signed a landmark Memorandum of Understanding (MoU) with Akhuwat Islamic Microfinance (AIM) to strengthen micro-enterprise development across Pakistan.
The MoU was formally signed at SMEDA Head Office by Socrat Aman Rana,CEO SMEDA and Dr. Amjad Saqib, Founder and Chairman of the Akhuwat Foundation,here on Saturday.
The ceremony was attended by Federal Secretary for Industries and Production Saif Anjum, Chief Credit Officer AIM Shahzad Akram and Chief Operating Officer of Pakistan Microfinance Network (PMN) Ali Basharat along with senior officials and members of SMEDA’s Micro Enterprises Policy & Program Design (ME P&PD) team.
Addressing the gathering,Secretary MOIP Saif Anjum underscored the pivotal role of SMEs in Pakistan’s economy,describing them as a cornerstone of resilience,innovation and job creation.
“Micro and small enterprises remain at the forefront of the Prime Minister’s economic agenda.A steering committee led by myself has been established to identify and resolve key issues facing the MSME sector, including restructuring SMEDA for greater efficiency,” he said.
He praised the MoU as a reflection of the commitment shown by PM Shahbaz Sharif and Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan toward empowering SMEs and strengthening Pakistan’s entrepreneurial landscape.
He expressed hope that the collaboration between SMEDA and AIM would create a dynamic ecosystem for bridging financing gaps and formalizing micro enterprises across underserved regions.
Earlier,welcoming the dignitaries,CEO SMEDA Socrat Aman Rana said, “This partnership with Akhuwat is a practical step toward realizing the Prime Minister’s dream of an equitable and thriving entrepreneurial environment.
We were committed to enhancing micro-enterprises through targeted capacity building,formalization and improved regulatory support.” He lauded the role of SAPM Haroon Akhtar Khan for championing the cause of micro and small businesses at the highest policy levels.
Sharing key statistics,Rana noted that Pakistan’s microfinance sector currently serves nearly 12 million active borrowers with a gross loan portfolio of PKR 644 billion,reflecting a 13 percent year-on-year growth.Notably,46 percent of borrowers are women, highlighting the sector’s inclusive and gender-responsive impact.
The largest financing segments include livestock and poultry (PKR 164 billion), agriculture (PKR 138 billion), and trade and services (PKR 144 billion), all critical to Pakistan’s rural and semi-urban micro and SMEs ecosystem. However, he observed that significant financing gaps persist, particularly in underserved regions. “This MoU represents a major breakthrough in bridging these gaps and unlocking the full potential of micro-enterprises,” he added.In his address,Dr. Amjad Saqib, Chairman of Akhuwat expressed strong commitment to realizing the shared objectives outlined in the MoU.“We believe this partnership will help micro-enterprises gain easier and enhanced access to interest-free finance across Pakistan, enabling them to play a transformative role in poverty alleviation and employment generation.”Dr. Amjad Saqib also thanked the Prime Minister, SAPM, Secretary MOIP, and CEO SMEDA for their vision and efforts in formulating a sustainable strategy that allows micro-enterprises to benefit from government-led incentives and policy reforms.