PESHAWAR - The Multi Donor Trust Fund (MDTF) funded project Economic Revitalisation of Khyber Pakhtunkhwa and FATA (ERKF) has distributed grants in 1,280 crisis-hit SMEs against the target of 850 SMEs while over 400 more will get the facility soon.
The project a joint initiative for both Khyber Pakhtunkhwa and FATA was aimed to provide support to the Small and Medium Enterprises (SMEs), attract investment and strengthen institutional capacities to foster investment and implement regulatory reforms.
The project is a response to the priority interventions identified under the donor supported Post Crisis Needs Assessment (PCNA) Report. The MDTF for Khyber Pakhtunkhwa, FATA and Balochistan was established to support the recommendations made in the PCNA report and is being administered by the World Bank on behalf of 10 donors.
The project is divided in three components, including SME development, investment mobilisation and capacity building to foster investment and implement reforms.
The component of SME development is being implemented by Small and Medium Enterprise Development Authority (SMEDA). Of the total project funds of $20 million under the MDTF, $14 million has been earmarked for SME Development Component with a share of $9.1 million for Khyber Pakhtunkhwa and $4.9 million for FATA.
The business community, particularly SMEs are fully satisfied with the working and implementation process of the implementing agency.
Talking The Nation, Zahidullah Shinwari, President of Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI), expressed satisfaction over the role of SMEDA in the project.
He said that SMEDA is a best implementing partner but the problem is with the officials of provincial bureaucracy as whenever any official is transferred it affects the whole process resulting in the stoppage of processing the files of SMEs.
He said the responsibility of SMEDA is merely the receiving of application forms and their processing while after the approval it is the Project Management Unit (PMU) of the provincial government that issue the cheques.
He said that up till now the project was moving in the right direction but now some officials of the provincial government are creating problems.
Zahidullah Shinwari said that situation in the province is not cordial for business activities. In such condition, the government should have taken measures for promotion of business activities. He said as the project is being run with the funds donors’ funds.
Therefore, he said the government officials should avoid making it a victim of their petty internal differences.
He said the business community would soon lodge complaint with Chief Minister Pervez Khattak against such employees of the provincial government and would bring the issue into the notice of him.