ISLAMABAD, May 30: The Asian Development Bank (ADB) has promised to provide a $150 million assistance to Pakistan for restructuring and development of its small and medium enterprises (SMEs) sector.

This assistance will be utilized for restructuring, improving technical expertise of SMEs and their technology to upgrade their products, said an announcement after the meeting of an ADB delegation with Finance Minister Shaukat Aziz here on Friday.

The mission comprising ADB country director Marshuk Ali and Rainer Hartel shared its preliminary impressions with the finance minister regarding their discussions with Smeda, SME Bank and various other banking and non-banking institutions.

The minister told the mission that there was a lot of potential to develop the SMEs sector in Pakistan. However, it needed assistance to bring technology in line with the global market, establishment of a regulatory framework, access to finances and proper marketing and management.

He further said that the mission should also look into the SME Bank that required restructuring and the bank should focus on preparing a reform plan that should address its old non-performing portfolio.

He also asked the mission to formulate a comprehensive strategy for the capacity building of Smeda, SME Bank and other entities that are interested in this sector. The programme should include strategy to transform SMEs into an engine of growth and employment generation.