LAHORE, Nov 05 (APP):Building on the momentum to expand access to finance and financial literacy for Pakistan’s Micro, Small and Medium Enterprises (MSMEs), the Small and Medium Enterprises Development Authority (SMEDA) here Thursday formalized strategic partnerships with two key institutions to strengthen the financial management and documentation capabilities of entrepreneurs across the country. SMEDA signed a Memorandum of Understanding (MoU) with Institute of Cost and Management Accountants of Pakistan (ICMA …
SMEDA fosters synergy with ICMA Pakistan, DigiKhata
LAHORE, Nov 05 (APP):Building on the momentum to expand access to finance and financial literacy for Pakistan’s Micro, Small and Medium Enterprises (MSMEs), the Small and Medium Enterprises Development Authority (SMEDA) here Thursday formalized strategic partnerships with two key institutions to strengthen the financial management and documentation capabilities of entrepreneurs across the country.
SMEDA signed a Memorandum of Understanding (MoU) with Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) and a Letter of Intent (LoI) with DigiKhata, a digital financial management platform facilitating transition of businesses from manual bookkeeping to digital financial records.
The documents were signed here at SMEDA office in the presence of the senior management of the respective organizations.
The collaborations assume particular significance in the wake of Prime Minister Muhammad Shehbaz Sharif’s renewed focus on SME financing, with an ambitious target of increasing it to Rs 2.2 trillion and expanding the number of SME borrowers to 775,000 by June 2028.
The MoU with ICMA Pakistan aims to undertake joint interventions to improve financial literacy, accounting practices and financial management among MSMEs.
ICMA Pakistan team comprised President Muhammad Yasin, Vice President Abdul Qayyum and Director ICMA Lahore Muhammad Sajjad Aheer whereas SMEDA was represented by GM (Enterprise Competitiveness and Growth) Raja Hassanein Javed, GM (Policy and Ecosystem Group) Sheharyar Tahir, GM (Inclusion and Sustainability) Syed Bilal Haider, DGMs Farah Yasir, Shaheen Tahir and Arif Chaudhry, Rana Haider Abbas (Management Associate, A2F, EC&G) and Usman Tariq (Assistant Manager A2F, EC&G).
Raja Hassanein Javed said SMEDA, in line with the SME financing targets set by Prime Minister Muhammad Shehbaz Sharif, is fully cognizant of its responsibility to strengthen documentation, improve bank readiness and enhance the creditworthiness of MSMEs across the country.
He highlighted that the collaboration aims to facilitate capacity-building programs and advisory services to equip entrepreneurs with essential skills in bookkeeping, financial reporting and maintaining transparent business records.
“These interventions will enable MSMEs to improve their financial management practices, meet formal banking requirements, strengthen their business credibility and become better positioned to access institutional financing,” he emphasized.
Muhammad Yasin highlighted ICMA Pakistan’s longstanding contributions and initiatives over the decades, particularly its research, professional expertise and capacity-building efforts. He endorsed the need for concerted efforts to strengthen the financial management capabilities of MSMEs, enabling them to become bankable and access credit through commercial banks and other formal financing channels.
The Letter of Intent signed between SMEDA and DigiKhata aims to accelerate the adoption of digital financial management solutions among MSMEs that continue to rely on manual registers and traditional bookkeeping methods.
DigiKhata team comprised CEO Adnan Aslam, Business Unit Head Sayyaf Haider Warraich and National Sales Manager (DSCF) Bilal Saleem.
The SMEDA team said the collaboration was meant to encourage and facilitate MSMEs to adopt digital tools for recording transactions, managing accounts and maintaining organized financial information. The digital financial footprints can help improve business transparency, facilitate credit assessment and strengthen enterprise readiness to access formal financing opportunities.
Adnan Aslam highlighted that DigiKhata offers simple and convenient digital financial management solutions, with a particular focus on addressing the needs of SMEs. He informed that the platform has already attracted one million active users and offers a range of services, including direct and indirect lending, export facilitation and account-opening facilities under the State Bank of Pakistan’s Open Banking Framework.
He expressed confidence that the collaboration with SMEDA would help further enhance these solutions and expand their benefits to MSMEs.
SMEDA officials say these partnerships complement ongoing initiatives under the government’s economic vision to improve access to finance (A2F), promote enterprise formalization and strengthen the overall competitiveness of MSMEs. SMEDA is also strengthening engagement with financial institutions, business associations and development partners to improve awareness of financing opportunities and equip entrepreneurs with the knowledge and documentation required to approach formal financial channels.
