SMEDA Partners with Akhuwat Islamic Microfinance
Lahore – In line with the Prime Minister’s forward-looking vision of inclusive economic growth through grassroots entrepreneurship, the Small and Medium Enterprises Development Authority (SMEDA) has inked a Memorandum of Understanding (MOU) with the Akhuwat Islamic Microfinance (AIM) to support the access to finance, formalization and hand-holding of micro enterprises across Pakistan. The manuscript of the MOU was signed by Mr. Socrat Aman Rana, CEO SMEDA and Dr. Amjad Saqib, Founder/Chairman Akhuwat Foundation, in presence of Mr. Saif Anjum, Federal Secretary Industries and Production, at SMEDA head office. Mr. Shahzad Akram, Chief Credit Officer, AIM, and Mr. Ali Basharat Chief Operating Officer Pakistan Microfinance Network (PMN). Micro Enterprises Policy & Program Design (ME P&PD) team of SMEDA along with a number of other senior officials were also present on this occasion.
Secretary MOIP Mr. Saif Anjum, while addressing the signing ceremony, said that MSMEs as a
backbone of Pakistan’s economy are fostering economic resilience, employment, and innovation in the country. The micro enterprises, along the SMEs are on top priority of the Prime Minister’s economic agenda, he said and informed that he had set up a steering committee headed by himself to address issues of the MSME. Under the steering committee, reorganization of SMEDA has also be done to enhance its efficacy in service to SMEs. “Today’s MoU between SMEDA and AIM reflects commitment of the Prime Minister Shehbaz Sharif and the Special Assistant to Prime Minister Mr. Haroon Akhtar Khan to empower MSMEs”, he said and hoped that the collaboration between SMEDA and AIM would strengthen micro-financing and capacity building by creating a robust ecosystem for bridging financial gaps and promoting inclusion of Micro Enterprises (MEs) in the formal financing landscape. He appreciated SMEDA’s efforts in training, advisory, and advocacy of MSMEs, and also commended AIM’s efforts in financial inclusion and micro financing.
Earlier, CEO SMEDA Mr. Socrat Aman Rana welcomed the guests and highlighted objectives of the SMEDA-AIM MoU. Highlighting the importance of this initiative, he said, “This collaboration with Akhuwat is a concrete step toward realizing the Prime Minister’s dream of a robust, equitable entrepreneurial ecosystem. Our focus will remain on strengthening micro enterprises through targeted capacity building and streamlined regulatory processes. “he added saying that role of the Special Assistant to the Prime Minister has been pivotal in bringing this collaboration to fruition. His consistent support for SMEDA’s mission and his tireless efforts to advocate for the growth of micro and small enterprises have been instrumental in ensuring policy alignment and institutional backing at the highest level. CEO SMEDA informed, microfinance has expanded to nearly 12 million active borrowers, supported by a gross loan portfolio of approximately PKR 644 billion—reflecting a robust 13% year-on-year growth. Notably, 46% of these borrowers are women, underscoring the sector’s inclusive and gender-sensitive impact, he said adding that the largest financing segments—trade and services (PKR144 billion), livestock and poultry (PKR 164 billion), and agriculture (PKR 138 billion)—mirror the core of Pakistan’s MSME ecosystem, especially in rural and semi-urban areas, he said. Yet, access to formal finance remains a significant hurdle for MSMEs, with underserved regions and sectors facing persistent financing gaps, he observed and hoped that the MOU with AIM is a major breakthrough in bridging this divide for unlocking the full potential of our entrepreneurial landscape, he added.
Chairman AIM Dr. Amjad Saqib, in his address, expressed the firm commitment to execute the objectives set in SMEDA-AIM MoU. He was confident that the MoU will help Micro Enterprises (MEs) to have an easy and enhanced access to financing through its nationwide representation. He acknowledged the significant role of micro enterprises in reducing poverty through the enhanced employment opportunities. He hoped that AIM in partnership with SMEDA will play a pivotal role in improving the national economy through sustainable growth of MSMEs in the country. He also appreciated PM, SAPM, Secretary MOIP and CEO SMEDA to formulate a viable strategy to enable the micro enterprises to avail of the privileges and financing incentives offered by the government.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
