EU €20mn programme: UNIDO, SEDF award grants to 17 SMEs in Sindh

EU €20mn programme: UNIDO, SEDF award grants to 17 SMEs in Sindh.

Key points

• Out of the €20 million programme, some €11 million has already been given in grant to 51 SMEs and 250 micro enterprises since 2023 to date.
• "The grant size of SME is capped at €200, 000, and at €10, 000 for micro enterprises, " Badar ul Islam remarked.
• Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list.
• Grants awarded under programme named Poverty Alleviation and Inclusive Development Throughout Rural Sindh.
• UNIDO and SEDF disbursed €2.03 million in grants to 17 SMEs in rural Sindh, part of a €50 million program to alleviate poverty and boost economic development through co-financing.

UNIDO and SEDF disbursed €2.03 million in grants to 17 SMEs in rural Sindh, part of a €50 million program to alleviate poverty and boost economic development through co-financing. Grant distribution to rural Sindh SMEs. Co-financing model and total program funding. Priority sectors for future grant applications. Add BRecorder as a trusted source on Google.

For context, the United Nations Industrial Development Organization (UNIDO), in partnership with the Sindh Enterprise Development Fund (SEDF), disbursed €2.03 million (or over Rs650 million) in grants to 17 selected small and medium-sized enterprises (SMEs) under its third round of co-financing programme, inviting more applications for the grant for the next batch in rural Sindh on Wednesday.

Notably, the grants were awarded under the enterprise grant programme named Poverty Alleviation and Inclusive Development Throughout Rural Sindh (PAIDAR), aiming at reducing poverty by promoting sustainable economic activities, strengthening local enterprises, and creating employment opportunities there.

"We have allocated more than €20 million for the enterprise development programme, " UNIDO Office In charge, Badar ul Islam, remarked while speaking at SME Grant Award Ceremony for the third batch and the launch of Enterprise Grants Window for the fourth batch.

UNIDO is implementing and supporting enterprise development throughout five districts in rural areas including Thatta, Badin, Sujawal, Tharparkar and Larkana, according to Badar ul Islam.

"This is a total of €50 million programme funded by European Union (EU) and implemented by UNIDO. Out of the €50 million, €20 million is for private enterprise development, " he remarked while talking to Business Recorder.

Out of the €20 million programme, some €11 million has already been given in grant to 51 SMEs and 250 micro enterprises since 2023 to date. The grant programme is opened till 2029.

"We do not provide 100% financing for projects. Rather, this is a co-financing model in which the project runners contribute equal financing or more. This is being done to encourage them to remain serious and create their business model successful and sustainable."

Special Assistant to the Chief Minister Sindh on Investment & Public-Private Partnership Projects, Syed Qassim Naveed Qamar remarked SMEs and micro enterprises remain the backbone of the economy, especially for rural areas.

"So, it remains crucial to backing SMEs to attain sustainable expansion in microeconomic and macroeconomic levels. Investment, innovation and industrialization remain key for a sustainable expansion in Pakistan, " he went on.

The fund was established to put provincial resources behind enterprises that can grow Sindh's economy. This is the Administration of Sindh investing in its own rural economy, and we have the funds ready for robust proposals.

SEDF CEO Khizar Pervaiz remarked the maximum size of the grant was set at Rs35 million for each project.

They are aimed at selecting 20 SMEs in the fourth round of the co-financing. Accordingly, the total size of the grant may vary between Rs700 million to Rs1 billion under the fourth batch, according to Pervaiz.

For context, the SEDF would receive new applications till September 15, 2026, he remarked, adding the grant was being provided to priority sectors including fisheries and aquaculture, information technology, research and development, waste recycling and bio-waste utilisation, with women-led businesses as a cross-cutting priority.

While applicants would contribute at least 30% or more, under the scheme, he remarked, UNIDO and SEDF would jointly finance up to 70% of eligible project costs. UNIDO conducts session on poverty alleviation. Poverty Alleviation and Inclusive Development Throughout Rural Sindh.

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Taken together, the developments around EU €20mn programme: UNIDO, SEDF award grants to 17 SMEs in Sindh point to a situation that is still moving, and the coming days should bring more clarity.