USAID Small and Medium Enterprise Activity Quarterly Progress Report (January – March 2021)

The SME sector in Pakistan remained significantly impacted by the COVID-19 pandemic, with sales and employment continuing to be affected. A total of 397 Micro, Small and Medium Enterprises (MSMEs) were assisted during this reporting period, with 30% being women-led/owned enterprises from various sectors. The assisted enterprises reported an increase in sales, with an average increase of 29% (inclusive of exports). The assisted exporters recorded an increase in exports, with an average increase of 47%. Partner SMEs generated USD 13.64 million in incremental sales attributable to SMEA, including USD 7.58 million in incremental exports. SMEA-assisted SMEs created 1,147 Full Time Equivalent (FTE) jobs and 3,974 short- and long-term job opportunities during this quarter. The COVID-19 pandemic continued to affect SMEA's operations, with the office remaining closed during January and February 2021 and staff working from home. The office reopened on March 1, 2021, but was closed again on March 16th due to several staff members testing positive for COVID-19. SMEA awarded 11 new SME Growth Grants and one new Innovation Grant during this reporting period. To date, the project has awarded a total of 106 grants, with seven grantees successfully completing their grant implementation and being formally closed. Based on promising projections from these grants, SMEA is on track for creating 12,795 jobs, revenue generation of USD 52.5 million, USD 11.9 million in direct Private Sector Investment (PSI), and exports worth USD 5.3 million, with direct benefits to more than 6,000 SMEs over a period of two years. The SMEA's goal is to improve the competitiveness of Pakistani SMEs. The project's objectives and sub-objectives include improving the Business Enabling Environment (BEE) and the economic performance of focus enterprises. The geographic focus of the project is nationwide, with a focus on improving the competitiveness of SMEs in various sectors. SMEA's office in Pakistan remained closed during January and February 2021 due to the COVID-19 pandemic, with staff working from home. The office reopened on March 1, 2021, but was closed again on March 16th due to several staff members testing positive for COVID-19. Regular meetings with staff and external stakeholders were organized using platforms such as Zoom, Google, and Microsoft Teams. The project has made significant progress in achieving its objectives, with a total of 106 grants awarded to date. The grantees have reported promising projections, with SMEA on track for creating 12,795 jobs, revenue generation of USD 52.5 million, USD 11.9 million in direct Private Sector Investment (PSI), and exports worth USD 5.3 million, with direct benefits to more than 6,000 SMEs over a period of two years. The SMEA's quarterly progress report highlights the project's achievements and challenges during the January-March 2021 reporting period. The report provides an overview of the project's activities, outcomes, and impact, as well as its plans and strategies for the next quarter. The report is intended to provide stakeholders with an update on the project's progress and to inform decision-making. The SMEA's quarterly progress report is a critical tool for monitoring and evaluating the project's performance. The report provides a comprehensive overview of the project's activities, outcomes, and impact, as well as its plans and strategies for the next quarter. The report is intended to provide stakeholders with an update on the project's progress and to inform decision-making.