SMEDA Joins Hands With ICMA, DigiKhata to Make Small Firms Bankable

Key Points

SMEDA signs an MoU with ICMA Pakistan and a letter of intent with DigiKhata in Lahore
The ICMA partnership targets financial literacy, accounting practices and financial management among MSMEs
The DigiKhata tie-up moves businesses from manual registers to digital financial records
The signings back the target of Rs2.2 trillion in SME financing and 775,000 borrowers by June 2028

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) on Thursday signed a memorandum of understanding with ICMA Pakistan. It also signed a letter of intent with digital bookkeeping platform DigiKhata.

A SMEDA statement said the partnerships would strengthen the financial management and documentation capabilities of entrepreneurs across the country. The documents were signed at the authority’s Lahore office in the presence of senior management of the respective organisations.

According to the statement, the collaborations assume significance in the wake of Prime Minister Muhammad Shehbaz Sharif’s renewed focus on SME financing.

The government has set a target of raising SME financing to Rs2.2 trillion by June 2028. The number of SME borrowers is to expand to 775,000 under the same drive.

The MoU with ICMA Pakistan provides for joint interventions to improve financial literacy, accounting practices and financial management among MSMEs.

The ICMA Pakistan team comprised its president Muhammad Yasin, vice president Abdul Qayyum and Lahore director Muhammad Sajjad Aheer.

SMEDA was represented by general managers Raja Hassanein Javed, Sheharyar Tahir and Syed Bilal Haider. Deputy general managers Farah Yasir, Shaheen Tahir and Arif Chaudhry were also present, along with management associate Rana Haider Abbas and assistant manager Usman Tariq.

Raja Hassanein Javed said SMEDA was fully cognisant of its responsibility to strengthen documentation, improve bank readiness and enhance the creditworthiness of MSMEs across the country.

He said the collaboration aimed to facilitate capacity-building programmes and advisory services for entrepreneurs. The focus, he said, was on 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.

Muhammad Yasin highlighted ICMA Pakistan’s longstanding contributions, particularly its research, professional expertise and capacity-building efforts over the decades. He endorsed concerted efforts to make MSMEs bankable and able to access credit through commercial banks and other formal financing channels.

“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.”

The letter of intent with DigiKhata aims to accelerate the adoption of digital financial management solutions among MSMEs. Many of these businesses continue to rely on manual registers and traditional bookkeeping methods.

The DigiKhata team comprised chief executive Adnan Aslam, business unit head Sayyaf Haider Warraich and national sales manager Bilal Saleem.

SMEDA officials said the collaboration was meant to encourage MSMEs to adopt digital tools for recording transactions, managing accounts and maintaining organised financial information. They said digital financial footprints could improve business transparency, facilitate credit assessment and strengthen readiness to access formal financing.

Adnan Aslam said DigiKhata offered simple and convenient digital financial management solutions, with a particular focus on the needs of SMEs. He said the platform had already attracted one million active users.

He said the platform’s services included direct and indirect lending, export facilitation and account-opening facilities under the State Bank of Pakistan’s Open Banking Framework. He expressed confidence that the collaboration with SMEDA would help enhance these solutions and expand their benefits to MSMEs.

According to SMEDA officials, the partnerships complement ongoing initiatives under the government’s economic vision to improve access to finance, promote enterprise formalisation and strengthen the overall competitiveness of MSMEs. The authority is also engaging financial institutions, business associations and development partners on financing awareness.

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