LAHORE - The SMEDA and the Islamabad Stock Exchange Limited (ISE) have inked a memorandum of understanding (MoU) to facilitate SMEs in securing financing through capital market. The manuscript of the MoU was signed by Sardar Ahmad Nawaz Sukhera, CEO SMEDA, and Mian Ayyaz Afzal, Managing Director/CEO ISE, at SMEDA head office.

Under the MoU, both organizations shall take concrete steps to foster linkage between SMEDA and stock exchanges and investigate the idea of having a separate SME counter at the stock exchange to promote SME sector. In furtherance of the objective of promoting the development of sound capital market mechanisms, the authorities will consult with each other and provide advice with a view to establishing and implementing an ongoing technical assistance program that will endeavor to facilitate various value added SME development services including development and strengthening of SME representative bodies, sector studies, analysis for sector development strategies and securing financing through capital market.

CEO SMEDA highlighted the services rendered by SMEDA to enhance entrepreusrship in the country. He especially referred to fresh SME Development Plan to be evolved in SMEDA and hoped that implementation on the plan would open new venues of investment in the SME sector that will require financing facilities through formal sources.

He said that the current MOU would help fill in the financing gap in SME sector.

Mian Ayyaz Afzal expressed confidence that partnership of his organization with SMEDA would be highly fruitful to promote entrepreneurship in the SME sector. He hoped that the MOU would pave way to lay down a long term road map for a joint move of SMEDA and ISE to create financing facilities for SMEs through capital market.