$20 million ERKF project approved for SMEs' rehabilitation

The Khyber Pakhtunkhwa, Federally Administered Tribal Areas (Fata) and Balochistan Multi-Donor Trust Fund (MDTF) announced on Thursday the approval of a US $20 million grant that will create sustainable employment opportunities through rehabilitation of some 850 Small and Medium Enterprises (SMEs), mobilising Diaspora investments and building institutional capacities to support regulatory reforms.
The Economic Revitalisation of Khyber Pakhtunkhwa and Fata (ERKF) project is a three-year endeavour that will rehabilitate, upgrade and support the development of crisis-affected SMEs in these areas. "Small businesses are the backbone of the economy of Khyber Pakhtunkhwa and FATA," said Abdul Wajid Rana, Secretary of the Economic Affairs Division. "These businesses suffered immense losses in the militancy crisis of 2009. Now is their chance to recover and help the province stand on its feet once again."
The project will be implemented by the Government of Khyber Pakhtunkhwa and Fata Secretariat, while SME Development Authority (Smeda) will be the implementing partner for the SME development component. "The economic growth of the Khyber Pakhtunkhwa and Fata regions had come to a grinding halt due to the militancy crisis, as also highlighted in the 2010 Post Crisis Needs Assessment (PCNA) Report. This MDTF-funded project will help put the lives of the residents of Khyber Pakhtunkhwa and FATA back on track by providing support to SMEs which serve as catalysts for job creation," said Rachid Benmessaoud, World Bank Country Director for Pakistan. "By partnering with Smeda and having the governments of Khyber Pakhtunkhwa and Fata implement the project, we are confident of the outcomes and look forward to a brighter future for the people of these regions."
The overall objective of the MDTF is to support reconstruction and reduce the potential for renewed conflict in Khyber Pakhtunkhwa, Fata and Balochistan. The World Bank-administered MDTF became operational on August 5, 2010, and provides a co-ordinated financing mechanism for the Government of Pakistan's development programmes in Khyber Pakhtunkhwa, Fata and Balochistan.-PR