ISLAMABAD, June 23: The United States Agency for International Development (USAID) will provide a grant of $10 million to the Small and Medium Enterprise Development Authority (Smeda) to help Pakistani businesses improve production and capacity to compete internationally. In this regard, USAID Director Lisa Chiles and Smeda Chief Executive Shahab Khawar Khawaja signed an agreement at a ceremony held at the federal ministry of industries here on Thursday.

The ceremony was attended by US Ambassador to Pakistan Ryan C.Croker, Minister for Industries and Production Jehangir Khan Tareen and senior officials from the ministries of industries and economic affairs.

The grant has been provided under the USAID’s Economic Growth Programme in Pakistan, which includes schemes in microfinance, business training, small-scale agriculture and competitiveness.

Speaking on the occasion, the US ambassador said supporting SMEs was a key part of the USAID’s economic programme for Pakistan.

SMEs have the greatest potential to increase trade and create jobs. Also, the SME sector will lead the economy in adapting to changing conditions and consumer demands, Mr Crocker said.

Mr Tareen thanked the USAID for its support in launching the SME programme and expressed the hope that the initiative would result in quality production, management and marketing techniques for Pakistani entrepreneurs.

The government of Pakistan intended to pledge an additional $10 million to the programme, thereby matching the USAID’s contribution, the minister said.

The USAID has been working on industrial capacity building in Pakistan over the last one year. With the USAID’s support, key Pakistani industries are developing strategies to increase their ability to target service-desirable customers and markets, add value to their products and increase their productivity.

The new grant would help industry groups introduce modern technologies, improve training of employees and increase access to commercial financing.