SMEDA, PM Youth Programme join hands to expand MSME financing access

September 10, 2026 (MLN): The Small and Medium Enterprises Development Authority (SMEDA) and the Prime Minister’s Youth Programme (PMYP) have entered into a Memorandum of Understanding (MoU) to expand awareness and access to financing and business development services for Micro, Small and Medium Enterprises (MSMEs) and young entrepreneurs across Pakistan.

The agreement was signed in the presence of Advisor to the Prime Minister on Industries and Production (Federal Minister) Haroon Akhtar Khan and Chairman PMYP Rana Mashood Khan.

Under the partnership, both organizations will combine their outreach networks, expertise and digital resources to facilitate broader access to the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS), according to APP.

The initiative will cover start-ups, existing MSMEs, individual entrepreneurs, firms and companies, with a focus on underserved areas and marginalized segments, particularly women entrepreneurs.

SMEDA will conduct awareness and training programmes on PMYB&ALS, covering eligibility requirements, documentation and application procedures. It will also support financial literacy initiatives and promote formal financing options in coordination with partner banks and relevant stakeholders.

The authority will undertake targeted outreach through its provincial and regional offices and Help Desks, while providing applicants with business development resources such as pre-feasibility studies, financial tools, business plan templates, training modules and other guidance for preparing financing proposals.

PMYP will disseminate scheme-related information and SMEDA-developed materials through its social media channels and Digital Youth Hub (DYH).

The platform will also feature SMEDA resources including pre-feasibility studies, financial tools, the SME financing products database and training modules.

The two organizations will share agreed data on rejected loan applications and the reasons for rejection to help identify gaps and areas requiring additional support.

Both sides will also enhance the visibility of PMYB&ALS through dedicated information slots and reciprocal website links. Designated focal teams will coordinate implementation, while quarterly review meetings will be held to assess progress and resolve implementation issues.

Speaking at the ceremony, Haroon Akhtar said the collaboration would help bridge the gap between available financing opportunities and potential beneficiaries by improving awareness, financial literacy and access to business development support.

He emphasized the importance of strengthening the quality of business proposals and financial literacy to facilitate greater access to formal financing for young entrepreneurs and MSMEs.

The initiative is also expected to support SMEDA’s Business Plan target of providing financial literacy to 92,480 MSMEs by strengthening outreach and facilitating access to formal financing opportunities.

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 signing ceremony.

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