SMEDA, PMYP sign MoU to expand financial, business support for youth

ISLAMABAD: The Small and Medium Enterprises Development Authority (SMEDA) and the Prime Minister's Youth Programme (PMYP) on Thursday signed a Memorandum of Understanding (MoU) to enhance outreach, awareness and access to financial and business development support for Micro, Small and Medium Enterprises (MSMEs) and aspiring young entrepreneurs across Pakistan. Advisor to the Prime Minister on Industries and Production (Federal Minister) Haroon Akhtar Khan and Chairman PMYP Rana Mashood Khan witnessed the signing ceremony. The partnership will leverage the respective resources, expertise, outreach networks and digital capabilities of SMEDA and PMYP to facilitate inclusive access to the Prime Minister's Youth Business and Agriculture Loan Scheme (PMYB&ALS). The collaboration will focus on start-ups, existing MSMEs, individual entrepreneurs, firms and companies, with particular emphasis on underserved regions and marginalized groups, including women entrepreneurs. Speaking at the ceremony, Haroon Akhtar said that the initiative was aligned with the PM's direction, leadership and vision to create greater economic opportunities for Pakistan's youth and strengthen the country's SME sector. 'Under the PM's leadership and vision, we are working to ensure that young people and entrepreneurs have better access to financial opportunities, business development support and the knowledge required to establish and grow sustainable enterprises,' he said. Haroon Akhtar said that the collaboration between SMEDA and the PMYP would help bridge the gap between financing opportunities and potential beneficiaries by improving awareness, financial literacy and access to business development resources. He said the government was particularly focused on reaching entrepreneurs in underserved regions and ensuring that women entrepreneurs also benefited from available financial and business support. Under the MoU, SMEDA will conduct awareness campaigns and training programmes regarding the PMYB&ALS, including eligibility criteria, documentation requirements and application procedures. It would also facilitate financial literacy initiatives and promote awareness of formal financing options in collaboration with partner banks and relevant stakeholders. SMEDA will undertake targeted outreach in underserved regions and among marginalized groups, including women entrepreneurs, to promote equitable access to financial services. It will also facilitate access to business development resources, including pre-feasibility studies, financial web-based tools, business plan templates, training modules and other relevant guidance to help applicants prepare viable financing proposals. The scheme will also be promoted through SMEDA's provincial and regional offices, including its Help Desks. Under the collaboration, PMYP will disseminate Scheme-specific information and SMEDA-developed support materials, including FAQs, video tutorials, business plan templates and how-to guides, through its social media platforms and Digital Youth Hub (DYH). PMYP will also feature SMEDA's key business development resources on the Digital Youth Hub, including pre-feasibility studies, financial tools, the SME financing products database, training modules and other relevant resources. The two organisations will also share agreed data relating to rejected loan applications, including reasons for rejection, to facilitate analysis and identify areas requiring further support. Both organisations will ensure enhanced visibility of the Prime Minister's Youth Business and Agriculture Loan Scheme through dedicated information slots and reciprocal links on their respective websites. The MoU also provides for the establishment of designated focal teams for coordination, while quarterly review meetings will be held to assess progress and address implementation-related issues. Joint activities and any associated financial responsibilities will be undertaken through mutual agreement and prior written documentation. Haroon said that improving financial literacy and the quality of business proposals was essential for expanding meaningful access to formal financing. 'This collaboration will not only increase awareness of financing opportunities but will also help young entrepreneurs and MSMEs better understand how to develop viable business plans and access formal financial channels,' he said. The initiative would contribute to the promotion of youth entrepreneurship, MSME development and financial inclusion across Pakistan, he added. The collaboration will also contribute to SMEDA's Business Plan target of providing financial literacy to 92,480 MSMEs by strengthening outreach, enhancing financial literacy and facilitating youth and MSMEs in accessing formal financing opportunities. The MoU marks a joint effort by SMEDA and PMYP to strengthen institutional coordination and provide young entrepreneurs and MSMEs with greater access to information, financial literacy and business development services in line with the Prime Minister's vision of expanding economic opportunities for the country's youth. CEO SMEDA Nadia J Seth, Joint Secretary Ministry of Industries and Production Freedoon Akram Sheikh, PMYP officials and representatives from various sectors also attended the ceremony.