SMEDA and JICA Launch Major Initiative to Empower Women Entrepreneurs in Punjab
A significant new collaboration between the Small and Medium Enterprises Development Authority (SMEDA) and the Japan International Cooperation Agency (JICA) is set to transform the landscape for women entrepreneurs in Punjab. The five-year program, officially titled "Project for Capacity Enhancement of Women Entrepreneurs in the Informal Economic Sector in Pakistan," represents a strategic effort to address the stark gender disparities in Pakistan's workforce.
Addressing a Critical Economic Gap
Statistics reveal a profound imbalance: women make up nearly half of Pakistan's population, yet their labor force participation stands at a mere 25.4%. This translates to approximately 47 million women outside the formal workforce. Furthermore, businesses led by women are predominantly small-scale, often operating informally with fewer than five employees, limiting their growth potential and economic impact.
This initiative aligns with the Government of Pakistan's broader goals to integrate women-led enterprises into the national economic framework. SMEDA has previously undertaken various efforts to enhance financial and digital literacy, improve market access, and build export capabilities among women entrepreneurs.
The Women Entrepreneurs Booster Package: A Core Innovation
At the heart of this new project is the development and implementation of the Women Entrepreneurs Booster Package. Officials describe this as a comprehensive support mechanism designed specifically to accelerate business growth and foster sustainable entrepreneurship among women operating in the informal economy.
The collaborative effort will focus on several key areas:
- Strengthening SMEDA's institutional capacity to better serve women entrepreneurs.
- Providing pre-incubation and incubation support to help formalize and scale businesses.
- Improving access to finance, a major hurdle for many women-led startups.
- Facilitating market linkages to connect products and services with broader opportunities.
Pilot Phase and Target Sectors
The project will commence with a pilot phase in two major Punjab cities: Lahore and Sialkot. It aims to directly support 2,000 women entrepreneurs and transgender entrepreneurs, recognizing the need for inclusive economic development.
Priority will be given to high-potential sectors where women can make significant inroads, including:
- Information Technology (IT) and digital services
- Textiles and apparel
- Sports goods manufacturing
- Surgical instruments production
- Various service industries
Through these targeted interventions, SMEDA aims to systematically reduce gender disparity, substantially increase women's participation in the economy, and enable them to contribute more effectively to sustainable national economic development.
Foundational Agreement and Strategic Vision
The foundation for this project was laid on July 3, 2025, when an agreement was signed by Mr. Socrat Aman Rana, the then CEO of SMEDA, and Ms. KOMAHASHI Rie, Head of Mission at the JICA Pakistan Office. Both organizations emphasized the project's critical role in fostering inclusive economic growth by directly addressing the systemic barriers faced by women entrepreneurs in Pakistan's vast informal sector.
This partnership marks a pivotal step in translating policy commitments into actionable support, potentially serving as a model for similar initiatives across other regions of Pakistan.
