ISLAMABAD, In a collaborative effort, the U.S. Government, through its U.S. Agency for International Development (USAID), the United Nations Development Programme (UNDP), and the Government of Khyber Pakhtunkhwa, initiated a strategic plan focused on expanding financial accessibility for Small and Medium Enterprises (SMEs) in Khyber Pakhtunkhwa’s merged territories. This launch witnessed participation from various stakeholders, including those from the banking realm, the Small and Medium Enterprises Development Authority (SMEDA), and the KP Chambers of Commerce, all of whom actively contributed their perspectives.

According to UN Information Centre, USAID Mission Director, Kate Somvongsiri, stressed the pivotal role of SMEs in the economic landscape of Pakistan, noting, “SMEs account for 90% of Pakistan’s workforce and contribute 40% to its GDP. Access to credit stands as a fundamental pillar for their growth and prosperity.”

Highlighting the necessity of innovative solutions in the current scenario, Neelum Sultana Khattak, the Additional Secretary Finance, commented, “The government of Khyber Pakhtunkhwa must be open to forging stronger ties with the private sector.” Khattak is optimistic that the new strategy, with its emphasis on result-driven actions, will stimulate private sector growth.

Ms. Van Nguyen, the UNDP Deputy Resident Representative, commended the development of the strategy. She stated, “This strategy at the sub-national level seeks to bolster financial inclusion for SMEs, aligning it closely with national-level endeavours.” Nguyen further recognized the unwavering commitment of the Provincial Government of Khyber Pakhtunkhwa in adopting a comprehensive strategy for sustained economic progression.

Historically, Khyber Pakhtunkhwa has received a mere 1.2 percent of the national credit. The novel strategy, underpinned by the use of advanced technology, aims to create innovative avenues for small businesses in the region to gain improved access to financial resources.