The US Agency for International Development (USAID), United Nations Development Programme (UNDP), and the Government of Khyber Pakhtunkhwa (KP) launched a strategy to improve access to finance for small and medium enterprises (SMEs) in the merged districts of the former Federally Administered Tribal Area (FATA), according to a news release issued on Tuesday.
Stakeholders from the banking sector, Small and Medium Enterprises Development Authority (SMEDA), and the KP Chambers of Commerce participated in the launch and exchanged ideas.
USAID Mission Director Kate Somvongsiri said that SMEs are the driving force of global economies, and Pakistan is no exception, with 90% of its workforce employed by SMEs and contributing 40% to the national GDP. She emphasized the importance of access to credit for businesses to grow and thrive.
Neelum Sultana Khattak, Additional Secretary Finance KP, said that out-of-the-box action-oriented thinking is needed to address the challenges. She emphasized that the government of Khyber Pakhtunkhwa is open to greater partnership with the private sector and that the strategy would help the private sector grow through result-focused interventions. UNDP Deputy Resident Representative Van Nguyen highlighted the importance of the strategy to mainstream financial inclusion for SMEs in harmony with national level efforts. She stated that the strategy reflects the KP government’s commitment to a multi-pronged approach for sustained economic growth.—APP
