Lahore, November 06, 2012 (PPI-OT): Small and Medium Enterprises Development Authority (SMEDA), in association with the government of Khyber Pakhtunkhwa and FATA secretariat, has made a breakthrough in economic revival of the SMEs damaged by the militancy crisis in the province of Khyber Pakhtunkhwa.
Mr. Yousaf Naseem Khokhar, Chief Executive Officer, SMEDA while addressing a meeting of Managing Committee at SMEDA head office informed that the Project titled as ‘Economic Revitalization of Khyber Pakhtunkhwa and FATA’ (ERKF) and funded by Multi-Donor Trust Fund (MDTF) under the auspices of World Bank (WB) had successfully been executed.
The project is helping a lot in revitalization of the private sector in the crisis-affected regions through direct support for the Small and Medium Enterprises (SMEs), attracting investments from the diaspora, and institutional capacity building including regulatory reforms, he said adding that the project is funded under MDTF grant of US$20 million, which is being executed by the World Bank through SMEDA, the Department of Industries, Khyber Pakhtunkhawa and FATA Secretariat.
CEO SMEDA further said that the SME Development component of the Project has an allocation of US$14 million with a share of $ 9.1 million and $ 4.9 million for Khyber Pakhtunkhwa and FATA respectively. The SME Development component is exclusively being implemented by SMEDA. There are three subcomponents of the grant program, viz: rehabilitation, up-gradation supports and capacity building and business development, he said.
Mr. Khokhar said that the rehabilitation component is being provided as a direct support to the affected SMEs in the form of matching grants to the eligible enterprises to be used as working capital for reconstruction of basic infrastructure and acquiring, repairing machinery and equipment etc.
He further elaborated that the subcomponent of the up-gradation is being provided for up-gradation of SMEs for improving business productivity and efficiency. This is being disbursed as matching grants to eligible individual SMEs as well as group of SMEs for cluster development programs. These grants are focused on technological innovation, products development, adopting new packaging/labelling requirements, establishing common facility centres (CFCs) etc, CEO SMEDA said.
Under the program a maximum amount of Rs.2.5 million is being given to the affected SMEs in head of Rehabilitation grant; one million in head of Up-gradation grant to individuals and up to Rs.5 million to cluster groups and BDS and Capacity building support of Rs.0.3 million in the shape of matching grants to affected SMEs, he said adding that a strict criteria had been devised by SMEDA for disbursement of the grant to be looked after by tripartite committees bearing representatives from government of Khyber Pakhtunkhawa, FATA and SMEDA.
For more information, contact:
Liaqat Ali Gohar
DGM (Admin. and PR)
Small and Medium Enterprise Development Authority (SMEDA)
6th floor, LDA Plaza, Egerton Road, Lahore
Fax: (042) 6304926