LAHORE, Jan 24: The Asian Development Bank (ADB) is expected to begin its SME development programme in Pakistan by January 2004.

It transpired at a workshop organized on developing the market for non-financial business development services for the SMEs here on Thursday. The workshop was arranged by the Small and Medium Enterprise Development Authority (Smeda) in collaboration with the ADB.

The workshop was addressed by Smeda chief executive officer Iqbal Mustafa, Bruce Harris, Klaus Altemeier, Peter Bissegger and ADB representative Rainer Hartel.

The speakers demanded that a SME Risk Capital Fund be set up for the small sector. The ADB and Smeda have already prepared a feasibility report for the establishment of a Risk Capital Fund in Pakistan.

They also called for the establishment of a credit guarantee agency at the earliest. Otherwise, they warned, the dream of promoting the SMEs in the country would not materialize.

Speaking on the occasion, Rainer Hartal said the ADB had conducted an in-depth study as a precursor to a significant programme loan to Pakistan. “Working with Smeda and both local and international consultants, the study has diagnosed the main barriers to the development of small sector and suggested initiatives to stimulate its growth in Pakistan.”

The study would be presented to the federal and provincial governments after its finalization.

In his address, Iqbal Mustafa said Smeda had been working hands in glove with the ADB to lay down a concrete plan for making the environment for the SMEs conducive.

The series of stakeholders’ workshops in different cities, he said, was part of concluding phase in this respect. He said the views and opinions received from the stakeholders would help give final touch to the report that would ultimately be transformed into a viable long-term policy for the development of the SMEs.

In the concluding session of the workshop, the three working groups presented their recommendations on promoting business development services for the SME sector.

Smeda general manager for international linkages and donor agencies Anjum Ahmad told reporters after the conclusion of the workshop that the ADB report on the SME Development Programme would be submitted to the government by April next. He said the last and final stakeholders workshop of this series would be held at Islamabad on Saturday on developing a conducive policy environment for the SMEs.