EU €20mn programme: UNIDO, SEDF award grants to 17 SMEs in Sindh

The United Nations Industrial Development Organization (UNIDO), in partnership with the Sindh Enterprise Development Fund (SEDF), disbursed €2.03 million (or over Rs650 million) in grants to 17 selected small and medium-sized enterprises (SMEs) under its third round of co-financing programme, inviting more applications for the grant for the next batch in rural Sindh on Wednesday.

The grants were awarded under the enterprise grant programme named Poverty Alleviation and Inclusive Development Across Rural Sindh (PAIDAR), aiming at reducing poverty by promoting sustainable economic activities, strengthening local enterprises, and creating employment opportunities there.

“We have allocated more than €20 million [around Rs6.5 billion] for the enterprise development programme,” UNIDO Office In charge, Badar ul Islam, said while speaking at SME Grant Award Ceremony for the third batch and the launch of Enterprise Grants Window for the fourth batch.

UNIDO is implementing and supporting enterprise development across five districts in rural areas including Thatta, Badin, Sujawal, Tharparkar and Larkana, according to Badar ul Islam.

“This is a total of €50 million programme funded by European Union (EU) and implemented by UNIDO. Out of the €50 million, €20 million is for private enterprise development,” he said while talking to Business Recorder.

Out of the €20 million programme, some €11 million has already been given in grant to 51 SMEs and 250 micro enterprises since 2023 to date. The grant programme is opened till 2029.

“The grant size of SME is capped at €200,000 each, and at €10,000 for micro enterprises,” Badar ul Islam said.

“We do not provide 100% financing for projects. Rather, this is a co-financing model in which the project runners contribute equal financing or more. This is being done to encourage them to remain serious and make their business model successful and sustainable.”

Special Assistant to the Chief Minister Sindh on Investment & Public-Private Partnership Projects, Syed Qassim Naveed Qamar said SMEs and micro enterprises remain the backbone of the economy, especially for rural areas.

“So, it remains crucial to support SMEs to attain sustainable growth in both microeconomic and macroeconomic levels. Investment, innovation and industrialization remain key for a sustainable growth in Pakistan,“ he added.

“The fund was established to put provincial resources behind enterprises that can grow Sindh’s economy. This is the Government of Sindh investing in its own rural economy, and we have the funds ready for strong proposals.”

SEDF CEO Khizar Pervaiz said the maximum size of the grant was set at Rs35 million for each project.

They are aimed at selecting 20 SMEs in the fourth round of the co-financing. Accordingly, the total size of the grant may vary between Rs700 million to Rs1 billion under the fourth batch, according to Pervaiz.

The SEDF would receive new applications till September 15, 2026, he said, adding the grant was being provided to priority sectors including fisheries and aquaculture, information technology, research and development, waste recycling and bio-waste utilisation, with women-led businesses as a cross-cutting priority.

Under the scheme, he said, UNIDO and SEDF would jointly finance up to 70% of eligible project costs, while applicants would contribute at least 30% or more.