USAID Small and Medium Enterprise Activity Quarterly Progress Report (April – June 2018)

The project's main objective is to improve the competitiveness of Pakistani small and medium enterprises (SMEs). The SMEA project has two main objectives: Improved Business Enabling Environment (BEE) and Improved Economic Performance of Focus Enterprises. The BEE objective aims to improve the Government of Pakistan's ability to develop and implement reforms of policies, laws, and regulations, as well as strengthen private sector and civil society engagement in policy-making. The Improved Economic Performance of Focus Enterprises objective aims to improve economic performance in select sectors, increase access to markets, increase access to finance, and enable women SMEs to run profitable businesses. During this reporting period, SMEA made significant progress in achieving its objectives. The project launched the Challenge Fund (CF) on April 12, 2018, in Islamabad, which aims to support SMEs in accessing finance and markets. SMEA also launched its Business Development Service (BDS) Program for Pakistani SMEs on June 27, 2018, in Islamabad. SMEA organized a series of sector-engagement sessions at incubators, accelerators, and university campuses in collaboration with Pakistan Software Export Board (PSEB) and Pakistan Software Houses Association (P@SHA). The project also organized three workshops in Karachi, Lahore, and Islamabad focused on General Data Protection Regulations (GDPR), a requirement for accessing European Union (EU) markets. In addition, SMEA worked closely with the Federal Government and the Small and Medium Enterprise Development Authority (SMEDA) to provide technical support to initiate the review of Pakistan's Small and Medium Enterprise (SME) Policy. SMEA recruited an organization to work on the revision of the policy and held a series of follow-up meetings with the Ministry of Commerce and Textiles to discuss the progress on incorporating SMEA's earlier recommendations for the Ministry's Strategic Trade Policy Framework (STPF) 2018-23. SMEA also continued to work with the Government of Punjab to help develop its Investment Policy Framework. The project organized two focus group discussions (FGDs) with private and public-sector stakeholders, including tech start-ups and women entrepreneurs, to gather first-hand information and discuss barriers to investment by SMEs and investors in Pakistan. Based on feedback received during the FGDs and from a detailed profiling exercise with investors, the project completed the first draft of the Investment Policy report. The SMEA project has made significant progress in achieving its objectives, and the project will continue to work with the Government of Pakistan and other stakeholders to improve the competitiveness of Pakistani SMEs. The SMEA project has a nationwide focus in Pakistan, with a total contract value of USD 34,836,223. The project's implementation period is from December 1, 2016, to November 30, 2021. The project's goal is to improve the competitiveness of Pakistani SMEs, and its objectives are to improve the business enabling environment and the economic performance of focus enterprises. SMEA has worked closely with various stakeholders, including the Federal Government, SMEDA, and the Government of Punjab, to achieve its objectives. The project has also collaborated with other organizations, such as PSEB and P@SHA, to support SMEs in accessing finance and markets.