press releases

06/23/2005

USAID Grants SMEDA US$ 10 Million

Islamabad - The United States Agency for International Development (USAID) will provide a grant of $10 million to the Small and Medium Enterprise Development Authority (SMEDA) to support Pakistani businesses to improve production and their capacity to compete internationally.

USAID Director Lisa Chiles and the Chief Executive SMEDA, Shahab Anwar Khawaja, signed the grant during a ceremony at the Federal Ministry of Industries, Production, and Special Initiatives. The ceremony was attended by U.S. Ambassador to Pakistan Ryan C. Crocker, Minister for Industries and Production, Jehangir Khan Tareen, and senior officials from the ministries of Industries and Economic Affairs.

Speaking on the occasion, Ambassador Crocker said that supporting SMEs is a key part of USAID economic programs. “SMEs have the greatest potential to increase trade and add jobs in the economy,” he said. “Also, the SME sector will lead the economy in adapting to changing conditions and consumer demands.”

Federal Minister for Industries and Production Jahangir Khan Tareen thanked USAID for its support in launching the program. He hoped that the initiative would result in quality production, management and marketing techniques for Pakistani entrepreneurs. He also stated that the Government of Pakistan intended to pledge an additional $10 million to the program, thereby matching the USAID contribution.

USAID has been working on industrial capacity building in Pakistan over the past year. With USAID support, key Pakistani industries are developing business strategies that increase their ability to target and serve desirable customers and markets, add value to their products, and increase their productivity. Through this new grant, USAID and SMEDA will help industry groups introduce modern technologies, improve training of employees, and increase access to commercial financing.

USAID’s Economic Growth Program in Pakistan includes programs in microfinance, business training, small-scale agriculture, and competitiveness. More information about USAID’s programs in Pakistan can be found at www.usaid.gov/pk.

Source: http://islamabad.usembassy.gov/pakistan/h05062301.html