ISLAMABAD, June 23: Pakistan and USAID are jointly setting up a $20 million Competitiveness Support Fund (CSF) for SME sector to spur the economy of the country, Federal Minister for Industries, Production and Special Initiatives Jehangir Khan Tareen said on Thursday.

The minister said that a grant of $10 million offered by the USAID for the fund would be matched by the government with an equal amount that would increase the volume of the CSF to $20 million.

Mr Tareen was speaking at the signing ceremony of the agreement concluded between USAID and the Small and Medium Enterprise Development Authority (Smeda) here on Thursday for the development of SMEs in Pakistan.

The agreement was signed by Smeda’s CEO Shahab Khawaja and USAID Director Ms. Lisa Chiles. US Ambassador to Pakistan Ryon C. Crocker was also present on this occasion.

Mr Tareen said that the government was endeavouring to have the industry development grants from other donor countries including the European Union, which would be summed up with an equal matching fund from its own kitty.

He said the CSF would be utilized to create venture capital fund, business incubators and credit guarantee schemes for SMEs in the country. The CSF, he said, would work as a private sector-led organization working closely with the productive government departments.

The minister expressed confidence over the potential of Pakistan’s private sector that had forced him to manage a leading role for the private sectors in economic development of Pakistan.

“We have been closely working with the private sector for the last six months in collaboration with USAID to evolve development strategies for three potential sectors of SMEs including dairy, gem and jewellery and the marble and granite”, he said adding, Prime Minister Shaukat Aziz had recently approved the development strategy for the dairy sector.

He said the strategy would pave the way for economic revolution alleviating poverty from the rural areas.—APP