In alignment with Prime Minister Shehbaz Sharif’s vision for inclusive economic growth through grassroots entrepreneurship, the Small and Medium Enterprises Development Authority (SMEDA) has signed an MoU with Akhuwat Islamic Microfinance (AIM) to promote access to finance, formalization, and capacity building for microenterprises across Pakistan.

The MoU was signed by Socrat Aman Rana, CEO SMEDA, and Dr Amjad Saqib, Founder and Chairman of Akhuwat Foundation, at a ceremony held in Lahore.

Federal Secretary for Industries and Production Saif Anjum, along with senior representatives from AIM, the Pakistan Microfinance Network (PMN), and SMEDA’s Microenterprise Policy & Program Design (ME P&PD) team, were present.

In his keynote address, Secretary MOIP Saif Anjum emphasized the critical role of MSMEs in driving economic resilience, employment, and innovation. “Microenterprises and SMEs are at the forefront of the Prime Minister’s economic agenda. A high-level steering committee, chaired by the Prime Minister himself, is actively working to address their challenges,” he stated.

Welcoming the guests, CEO SMEDA Socrat Aman Rana highlighted the strategic objectives of the collaboration, calling it “a concrete step toward realizing the Prime Minister’s vision of a dynamic and equitable entrepreneurial landscape.” He acknowledged the vital support of the Special Assistant to the Prime Minister in bringing the partnership to fruition and aligning institutional efforts.

He noted that the microfinance sector now serves nearly 12 million active borrowers, backed by a gross loan portfolio of Rs644 billion - with women comprising 46pc of borrowers. He identified key financing areas such as trade, livestock, and agriculture as central to the MSME ecosystem, particularly in rural and semi-urban regions. Despite this progress, he emphasized the ongoing need to bridge financing gaps and formalize underserved sectors.

Dr Amjad Saqib reaffirmed Akhuwat’s dedication to the partnership, expressing confidence that the collaboration with SMEDA would significantly enhance microenterprises’ access to finance nationwide. He underscored Akhuwat’s commitment to supporting sustainable MSME development as a pathway to inclusive economic progress.

This partnership marks a significant milestone in strengthening Pakistan’s microenterprise landscape through coordinated efforts in financing, capacity building, and institutional support, he said.