SMEDA, Akhuwat Strengthen Collaboration to Boost Microfinancing for MSMEs

By Farzana Chaudhry – Lahore, Pakistan

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) and Akhuwat Islamic Microfinance (AIM) held a collaborative meeting on Monday aimed at enhancing access to finance and supporting development initiatives for Micro, Small, and Medium Enterprises (MSMEs).

Ms. Nadia Jehangir Seth, Acting CEO of SMEDA, chaired the meeting and stated that the initiative aligns with the SME development vision of Prime Minister Mian Muhammad Shahbaz Sharif, under the guidance of SAPM Haroon Akhtar Khan and Ministry of Industries & Production Secretary Saif Anjum. She added that both organizations are already linked through an existing MoU focused on expanding MSMEs’ access to finance, strengthening capacity-building programs, and promoting joint advisory and development efforts.

The meeting emphasized extending SMEDA’s business development support services to micro and women entrepreneurs, with a particular focus on Gilgit-Baltistan, Azad Jammu & Kashmir, and Balochistan. The Acting CEO noted the strong presence of SMEDA’s regional offices in these areas, highlighting their commitment to implementing initiatives aimed at improving economic resilience, generating employment, increasing financial inclusion, and expanding access to affordable finance—especially for micro and women-led enterprises.

Ms. Seth highlighted the persistent challenges faced by MSMEs in accessing formal finance, such as limited financial literacy and insufficient advisory support. She said the partnership with AIM aims to bridge these gaps through shared expertise, integrated service delivery, and coordinated development efforts. The collaboration, she added, reflects SMEDA’s commitment to strengthening the microfinance ecosystem and ensuring MSME inclusion in the formal financial sector.

SMEDA’s GM Micro Enterprises Division, Mr. Ashfaq Ahmad, praised AIM’s longstanding role in promoting micro-lending and financial inclusion. He confirmed SMEDA’s readiness to expand training, advisory, and advocacy programs in GB and AJK, subject to regional cluster identification and needs assessments.
GM Gender & Sustainability, Mr. Sheharyar Tahir, added that SMEDA will design targeted interventions for women entrepreneurs based on data and insights shared by AIM.

Representing AIM, Mr. Shahzad Akram, Chief Credit Officer, emphasized that the strengthened collaboration will unlock new opportunities for MSMEs, especially women-led businesses. He reaffirmed AIM’s full support for the objectives outlined in the MoU and expressed confidence in the partnership’s potential to transform the microfinance landscape.