The Small and Medium Enterprises Development Authority (Smeda) and the Islamabad Stock Exchange Limited (ISE) signed a Memorandum of Understanding (MoU) on Friday to facilitate Small and Medium Enterprises (SMEs) in securing financing through capital markets.
The MoU was signed by CEO Smeda Sardar Ahmad Nawaz Sukhera and Managing Director/CEO, ISE at Mian Ayyaz Afzal at the Smeda head office.
Under the MoU, both organisations will take concrete steps to foster linkage between Smeda and stock exchanges and investigate the idea of having a separate SME counter at the stock exchange to promote the SME sector.
The step will allow SMEs greater access to the financial markets for a readily available source of funds.
In furtherance of the objective of promoting the development of sound capital market mechanisms, the authorities will consult with each other and provide advice with a view to establishing and implementing an ongoing technical assistance programme that will endeavour to facilitate various value added SME development services including development and strengthening of SME representative bodies, sector studies, analysis for sector development strategies and securing financing through capital market.
Earlier, CEO Smeda Sardar Ahmad Nawaz Sukhera highlighted the services rendered by Smeda to enhance entrepreneurship in the country. He referred to a fresh SME development plan to be evolved in Smeda and hoped that implementation on the plan would open new venues of investment in the SME sector that will require financing facilities through formal sources.
He said the MoU would help fill in the financing gap in the SME sector.
Mian Ayyaz Afzal expressed confidence that partnership of his organisation with Smeda would be highly fruitful to promote entrepreneurship in the SME sector.
He hoped that the MoU would pave way to lay down a long term roadmap for a joint move of Smeda and ISE to create financing facilities for SMEs through capital market.
Published in The Express Tribune, August 17th, 2013.
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