SMEDA, PM Youth Programme Join Hands to Widen Loan Support for Young Entrepreneurs
Islamabad: The Small and Medium Enterprises Development Authority (SMEDA) and the Prime Minister’s Youth Programme (PMYP) have signed a Memorandum of Understanding to strengthen cooperation for expanding awareness, outreach and access to financial and business development support for micro, small and medium enterprises and aspiring young entrepreneurs across Pakistan.
The signing ceremony was witnessed by Adviser to the Prime Minister on Industries and Production (Federal Minister) Haroon Akhtar Khan and Chairman Prime Minister’s Youth Programme Rana Mashood Khan.
CEO SMEDA Nadia J Seth, Joint Secretary for Industries and Production Freedoon Akram Sheik, the Prime Minister’s Youth Programme team and representatives from different sectors were also present on the occasion.
Under the arrangement, SMEDA and PMYP will use their resources, expertise, outreach networks and digital platforms to improve inclusive access to the Prime Minister’s Youth Business and Agriculture Loan Scheme. The collaboration will cover start-ups, existing MSMEs, individual entrepreneurs, firms and companies, with special focus on underserved areas and marginalised groups, including women entrepreneurs.
Speaking at the ceremony, Haroon Akhtar Khan said the initiative was in line with the Prime Minister’s direction, leadership and vision to create wider economic opportunities for the youth and strengthen the SME sector in the country.
“Under the Prime Minister’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 Khan said the partnership between SMEDA and the Prime Minister’s Youth Programme would help reduce the gap between available financing opportunities and potential beneficiaries by improving awareness, financial literacy and access to business development resources.
He said the government was giving particular attention to entrepreneurs in underserved regions and wanted to ensure that women entrepreneurs also benefited from the available financial and business support.
As part of the MoU, SMEDA will hold awareness campaigns and training programmes about the Prime Minister’s Youth Business and Agriculture Loan Scheme, including its eligibility criteria, documentation requirements and application process. It will also support financial literacy activities and promote awareness of formal financing options in coordination with partner banks and relevant stakeholders.
SMEDA will carry out targeted outreach in underserved regions and among marginalised groups, including women entrepreneurs, to encourage equitable access to financial services. It will also provide access to business development resources such as pre-feasibility studies, web-based financial 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 cooperation framework, PMYP will share scheme-related information and SMEDA-developed support material, including FAQs, video tutorials, business plan templates and how-to guides, through its social media platforms and Digital Youth Hub.
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 material.
The two organisations will exchange agreed data related to rejected loan applications, including reasons for rejection, to support analysis and identify areas where further assistance is needed.
Both sides will enhance 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 formation of designated focal teams for coordination. Quarterly review meetings will be held to assess progress and resolve implementation-related matters. Joint activities and any related financial responsibilities will be carried out through mutual agreement and prior written documentation.
Haroon Akhtar Khan said improving financial literacy and the quality of business proposals was vital for widening 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.
He added that the initiative would support youth entrepreneurship, MSME development and financial inclusion across Pakistan.
The collaboration will also help SMEDA pursue its business plan target of providing financial literacy to 92,480 MSMEs by strengthening outreach, improving financial literacy and facilitating youth and MSMEs in accessing formal financing opportunities.
The MoU reflects a joint effort by SMEDA and PMYP to improve 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 Pakistan’s youth.
