MDTF for KP, Fata, Balochistan: ERKF distributes grants among 1,280 crisis-hit SMEs

The Multi Donor Trust Fund (MDTF) funded project Economic Revitalisation of Khyber Pakhtunkhwa and Fata (ERKF) has distributed grants in 1,280 crisis-hit Small and Medium Enterprises (SMEs) against the target of 850 SMEs while over 400 more will also get the facility soon.
The project was aimed at providing support to the SMEs, attracting diaspora investment, and strengthening institutional capacities to foster investment and implement regulatory reforms. The project is a response to the priority interventions identified under the donor supported Post Crisis Needs Assessment (PCNA) Report. The MDTF for KP, Fata and Balochistan was established to support the recommendations made in the PCNA report, and is being administered by the World Bank on behalf of 10 donors.
The project is divided in three components including SME development, investment mobilisation and capacity building to foster investment and implement reforms. The component of SME development is being implemented by Small and Medium Enterprise Development Authority (Smeda). Of the total project funds of $20 million under the MDTF, $14 million has been earmarked for SME development component with a share of $9.1 million for KP and $4.9 million for Fata. The business community, particularly SMEs are fully satisfied with the working and implementation process of the implementing agency.
Talking to this scribe President of Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI), Zahidullah Shinwari has expressed full satisfaction on the role of the Smeda in the project.
He said the responsibility of Smeda is merely the receiving of application forms and their processing while after the approval it is the Project Management Unit (PMU) of the provincial government that issue the cheques. He said that up till now the project is moving in right direction, but now some officials of the provincial government are creating problems.
Zahidullah Shinwari said that situation in the province is not cordial for business activities. In such conditions the government should take measures for promotion of business activities. He said the business community would soon lodge complaint with Chief Minister Pervez Khattak against such employees of the provincial government.