Special Assistant to the Prime Minister (SAPM) on Industries and Production Mr Haroon Akhtar Khan says that under the Prime Minister’s vision, microenterprises are being provided access to government financial schemes and development services.

He stated this while addressing the signing ceremony of a Memorandum of Understanding (MoU) between the Small and Medium Enterprises Development Authority (SMEDA) and Mobilink Microfinance Bank Limited (MMBL), held at SMEDA Headquarters on Oct 18.

The MoU was signed by SMEDA’s Chief Executive Officer Mr Socrat Aman Rana and MMBL President & CEO Mr Harris Mahmood Chaudhry. Federal Secretary for Industries and Production Mr Saif Anjum was also present.

SAPM Haroon Akhtar Khan said that under the dynamic leadership of Prime Minister Shehbaz Sharif, Pakistan is progressing towards building a strong, inclusive and growth-oriented SME sector. He added that the government aims to create a business environment where every micro, small and medium enterprise has equal opportunities to grow, compete and contribute meaningfully to Pakistan’s economic future.

He expressed concern that despite their tremendous potential, MSMEs continue to face persistent challenges - the most significant being limited financial literacy and inadequate access to finance. He emphasized that the MoU marks a major step towards addressing these barriers.

Under this collaboration, both institutions will work together to extend loans and business development services to small enterprises operating even in Pakistan’s villages and towns, he said.

Mr Khan added that the present government is also striving to formalize micro, small and medium businesses operating in the informal sector so that they can benefit from government support schemes. He congratulated the leadership of SMEDA and MMBL for joining hands to support microenterprises in Pakistan.

Federal Secretary for Industries and Production Mr Saif Anjum said that under the leadership of Prime Minister Shehbaz Sharif and the guidance of SAPM Haroon Akhtar Khan, Pakistan is moving forward with renewed commitment to strengthen its SME sector.

He expressed confidence that the partnership between SMEDA and MMBL would play a vital role in developing MSMEs through financial literacy and capacity-building programs. He noted that through this MoU, the combined services of Mobilink Microfinance Bank and SMEDA will reach hundreds of thousands of small businesses across the country.

Earlier, SMEDA’s CEO Mr Socrat Aman Rana, while highlighting the significance of the MoU, informed that the total microfinance portfolio in Pakistan exceeds Rs650 billion, of which microfinance banks hold a 71.3% share. However, women borrowers account for only 34.8% of total lending, reflecting the need for greater credit inclusion in this sector.

He added that under the guidance of SAPM Haroon Akhtar Khan and Federal Secretary Saif Anjum, SMEDA has previously signed MoUs with the Pakistan Microfinance Network and Akhuwat to promote microfinancing and the collaboration with MMBL is a continuation of that effort. He expressed hope that this partnership between SMEDA and MMBL would further empower small businesses in Pakistan.

MMBL President & CEO Mr Harris Mahmood Chaudhry said that empowering MSMEs is vital for Pakistan’s socioeconomic development and microfinance has a key role to play in that process. Through this partnership with SMEDA, he added, MMBL will be better positioned to fulfill that role effectively.

He said the collaboration will not only promote microfinancing but also combine digital finance, training and business development services to create an enabling environment in which MSMEs can emerge as a strong pillar of Pakistan’s sustainable economic growth.