OUR STAFF REPORTER PESHAWAR - Small and Medium Enterprises Development Authority (Smeda) signed a Memorandum of Understanding (MoU) with provincial government to initiate projects worth $20 million, funded by World Bank for revitalisation SME business in Khyber Pakhtunkhwa and FATA. The Khyber Pakhtunkhwa Secretary Industries, Shahrukh Arbab and Smeda General Manager Outreach and operation, Syed Iqbal Kidwai formally signed the agreement in a ceremony here on Friday. In the ceremony, World Bank representative Gabi G Afram, Smeda Provincial Chief, Javed Iqbal Khattak, Project Director, ERKF, Khyber Pakhtunkhwa, Mian Khalid Jan, Manager Smeda, Khyber Pakhtunkhwa, Sarmad H Khan and other senior government officials were present. The Smeda is going to implement SME development component of the Multi Donor Trust Fund (MDTF) project of total worth $20 million under the MDTF. The project prime objective is to provide direct support to the SMEs affected by floods and insurgency in Khyber Pakhtunkhwa and FATA. The grants would extend for reconstruction of basic infrastructure, and acquiring/ repairing machinery and equipment, etc. All those SME sustained any physical damages will be provided with a grant up to Rs 2.5 million in order to generate employment in the affected areas. The upgradation of SMEs for improving business productivity, efficiency technological innovation, product development, adopting new packaging/ labeling requirements, establishing common facility centers (CFCs) are another goal of project. The project would also cover SMEs capacity building and their Business Development in partnership with the Business Edge Programme of International Finance Corporation (IFC) and through procurement of business development services (BDS) required by the SME. Speaking on the occasion, Smeda GM Iqbal Kidwai said that the ERKF has two-pronged objectives including rehabilitation of SMEs and mobilisation and reactivation of business in Khyber Pakhtunkhwa and FATA. He observed that business had adversely affected in prevailing insurgency and natural calamity in the country, particularly in Khyber Pakhtunkhwa and Tribal areas. He maintained that regions are much needed external support to reactivate business activities, because SMEs were powerless to regenerate their business without donors assistance and support. Kidwai said that the SMEs business will take much time for reactivation, saying that the project would not only helpful to revitalise business in KP and FATA but would also create job opportunities for youth as well. The Secretary Industries, Shahrukh Arbab and Smeda provincial Chief, Javed Iqbal also highlighted the significance and objectives of the project.