SMEDA partners with ICMA Pakistan and DigiKhata to expand MSME financing opportunities

The Small and Medium Enterprises Development Authority (SMEDA) has entered into strategic partnerships with the Institute of Cost

LAHORE, November 5, 2026: The Small and Medium Enterprises Development Authority (SMEDA) has entered into strategic partnerships with the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) and digital financial management platform DigiKhata to improve financial literacy, business documentation and access to formal financing for Micro, Small and Medium Enterprises (MSMEs) across Pakistan.

The partnerships were formalised through a Memorandum of Understanding (MoU) with ICMA Pakistan and a Letter of Intent (LoI) with DigiKhata at SMEDA’s Lahore office, attended by senior officials from the participating organisations.

The collaborations come amid Prime Minister Muhammad Shehbaz Sharif’s renewed emphasis on expanding SME financing, with the government targeting an increase in financing to Rs2.2 trillion and expanding the number of SME borrowers to 775,000 by June 2028.

MoU with ICMA Pakistan

The agreement with ICMA Pakistan focuses on joint initiatives to enhance financial literacy, accounting practices and financial management skills among MSMEs, enabling businesses to improve documentation and meet formal banking requirements.

SMEDA General Manager Enterprise Competitiveness and Growth Raja Hassanein Javed said the authority was committed to supporting the government’s SME financing objectives by strengthening business documentation, improving bank readiness and enhancing the creditworthiness of enterprises.

He said the partnership would facilitate capacity-building programmes and advisory services to help entrepreneurs develop skills in bookkeeping, financial reporting and maintaining transparent business records.

“These interventions will enable MSMEs to improve their financial management practices, meet formal banking requirements, strengthen their business credibility and become better positioned to access institutional financing,” he emphasised.

ICMA Pakistan President Muhammad Yasin highlighted the institution’s longstanding contributions to professional development, research and capacity-building. He stressed the importance of coordinated efforts to strengthen MSMEs’ financial management capabilities and enable them to secure financing through commercial banks and other formal channels.

ICMA Pakistan Vice President Abdul Qayyum and Director ICMA Lahore Muhammad Sajjad Aheer were also present at the signing ceremony.

SMEDA was represented by senior officials, including GM Policy and Ecosystem Group Sheharyar Tahir, GM Inclusion and Sustainability Syed Bilal Haider, DGMs Farah Yasir, Shaheen Tahir and Arif Chaudhry, along with other representatives from its Access to Finance and Enterprise Competitiveness and Growth teams.

LoI with DigiKhata

The Letter of Intent with DigiKhata aims to accelerate the adoption of digital financial management solutions among MSMEs that continue to rely on traditional bookkeeping methods and manual registers.

The collaboration will encourage entrepreneurs to use digital tools for recording transactions, managing accounts and maintaining organised financial records. These digital financial footprints are expected to improve transparency, facilitate credit assessments and strengthen businesses’ eligibility for formal financing.

DigiKhata Chief Executive Officer Adnan Aslam said the platform provides accessible digital financial management solutions tailored to the needs of small and medium-sized enterprises.

He informed the participants that DigiKhata had already attracted one million active users and offered services including direct and indirect lending, export facilitation and account-opening facilities under the State Bank of Pakistan’s Open Banking Framework.

DigiKhata Business Unit Head Sayyaf Haider Warraich and National Sales Manager (DSCF) Bilal Saleem also attended the ceremony.

Strengthening MSME Competitiveness

SMEDA officials stated that the partnerships complement ongoing government initiatives aimed at improving access to finance, promoting enterprise formalisation and enhancing the competitiveness of MSMEs.

The authority is also expanding engagement with financial institutions, business associations and development partners to raise awareness of financing opportunities and equip entrepreneurs with the necessary knowledge and documentation to approach formal financial institutions.

The collaborations are expected to help businesses improve financial discipline, strengthen their credibility and unlock greater access to institutional financing, supporting sustainable growth across Pakistan’s SME sector.