SMEs lack financial literacy, advisory support

Banks, SMEDA join hands to tackle challenges through shared resources

LAHORE:

Federal Minister for Industries and Production Rana Tanveer Hussain has said that small and medium enterprises (SMEs), called the backbone of Pakistan's economy, are fostering economic resilience, employment and innovation in the country.

At a memorandum of understanding (MoU) signing ceremony between the Small and Medium Enterprises Development Authority (Smeda) and Pakistan Banks Association (PBA) on Friday, the minister remarked that the SMEs were facing hurdles in getting access to financing due to the lack of financial literacy and advisory support.

"The partnership of Smeda with financial institutions is aimed at addressing these challenges through shared resources, knowledge and expertise," he said.

"The strategic alliance between Smeda and the PBA demonstrates our dedication to empowering the SMEs by promoting financing opportunities, enhancing capacity building and establishing a strong ecosystem to bridge financial gaps and integrate small units into the formal financial system."

The minister appreciated Smeda's efforts to train and provide advisory services for the SMEs and also commended the PBA for promoting financial inclusion and SME financing through its member banks.

He hoped that the synergy created through the partnership would unlock new opportunities for the SMEs. He urged the two organisations to strive for achieving the objectives outlined in the MoU.

He assured them that the Ministry of Industries would fully support the collaboration to strengthen the SME sector. The partnership aims to empower the SMEs by enhancing their bankability through joint initiatives, including capacity building, information sharing, and research on SME clusters and sectors.

The collaboration also focuses on raising awareness of the government's subsidised financing schemes, improving financial literacy and advocating for policies that support SME growth.

Additionally, efforts will include enhancing financial inclusion by improving women entrepreneurs' access to finance through financial literacy programmes.

In his speech, Federal Secretary for Industries and Production Saif Anjum termed the MoU a major step forward in strengthening the SME ecosystem. He hoped that both organisations would pay special attention to improving SMEs' access to finance through mutual commitment and shared responsibility.