3.2 million SMEs exist in country: Dr Ayesha

Provincial Minister for Finance Dr Ayesha Ghous Pasha has said that there are around 3.2 million small and medium enterprises (SMEs) in Pakistan of which 65 percent are operating in the Punjab. She said this while addressing the inaugural session of a workshop organized by the University of Queensland Business School, Australia, and AGAHE Pakistan jointly on 'creating wealth in smallholder farms' through efficient credit systems in Pakistan.'
Ayesha Ghous Pasha said the SMEs worldwide are considered backbone of the economy, being a major source of innovation, growth, job creation and modernization. She added that the Punjab E-credit Scheme is one and known as "empowerment of kissan through digital & financial inclusion". This is a hassle- and interest-free loan provision to farmers through mobile wallets (branchless channel). In additional to loans, provision of smart phones within built agriculture mobile applications for farm advisory is also the part of the program, she said.
The minister said the objective of the interest free agri E-Credit Scheme is to reduce the cost of production for marginalized farmers and to increase the outreach of formal and digital financial services to meet the agenda of financial inclusion. She said that to facilitate credit to SMEs in the Punjab, a series of meetings held with SBP, commercial banks and other stakeholders including chambers of commerce & industry and SME Associations to firm up a proposal for introducing a loaning scheme for SMEs.
After thorough discussions and deliberations at various forums, two schemes (loan mark up support program and credit guarantee scheme) have been proposed for development and promotion of SMEs. Australian High Commissioner Margaret Adamson, Pakistan High Commissioner for Australia Naela Chohan, Secretary Agriculture M. Mehmood Rai and CEO Pakistan Microfinance Company Yasir Ashfaq were also present on this occasion.
Margaret Adamson admired the 17 years old positive diplomat relationship between Pakistan and Australia. She said Australia is not only providing educational scholarships but also investing in other sectors including employment generation and women empowerment. She said the objective of the workshop is to provide a platform for knowledge exchange, discussion and networking focused on smallholders' access to agricultural finance.
The preliminary findings of the study were also shared which was funded by the Australian Centre for International Agriculture Research (ACIAR) and implemented in collaboration with Pakistan Agriculture Research Council (PARC). Credit is an important enabler for smallholders' farm productivity and profitability and can play a vital role in improving food security. Despite the increase in sources of formal and informal agricultural financing in recent years, smallholders still have limited access to credit sources in Pakistan.
Naela Chohan said to enhance international and national development, the sustainable development goals have been accepted by the international community which is aimed at eradicating poverty, particularly of women. In this regard, micro-financing in agriculture is now being recognized at the most effective form of financial assistance for development that has its primary objective of alleviating poverty, especially of women who are "the invisible farmers". The governments, donors and NGOs around the world have responded actively with plans and intention to work together towards the realization of these goals.
Muhammad Mehmood Rai and Yasir Ashfaq Also expressed their views. The event brought policy makers, regulators, financial institutions, NGOs, academia and many other stakeholders together and provided them the opportunity to meet and share their experience and research interests in agriculture financing.