Memorandum of Understanding signed for Economic Revitalization of Khyber Pakhtunkhwa and FATA Project

Peshawar: A Memorandum of Understanding (MoU) for World Bank administered Economic Revitalization of Khyber Pukhtunkhwa & FATA Project that is funded through the Multi Donors Trust Fund (MTDF) has been signed on September 26, 2011 between FATA Secretariat and Small Medium Enterprise Development Authority (SMEDA).

Signatories comprising, Mr. Abid Majeed Secretary Admin & Coordination FATA Secretariat, and Mr. Javed Khattak Provincial Chief SMEDA divulged the total worth of project as USD 20 million, out of which USD 7 million will have been granted for FATA Component to target entire FATA region.

It will be three year project that ends in December 2014 and will be implemented by SMEDA and FATA Secretariat.

The sub-components of the project are rehabilitation, up gradation of Small Medium Enterprises (SMEs) and provision of business development services to the SMEs affected by the crisis.

These sub-components intend to address the core needs highlighted in the recent Post Crisis Needs Assessment (PCNA).

FATA component of the project will aim to economically revitalize crisis affected SMEs, encourage investment in private sector, support public private partnership, and develop long term institutional underpinning for growth through capacity building of public sector institutions to foster investment, implement regulatory reform, strengthen market mechanism, support data collection and tap into the domestic and international diasporas network.

Local Economic Departments (LEDs) will be setup through these grants to support industrial organizations and identify failures in the dimensions of infrastructure, institutions, regulation and information/technology.

These aimed efforts will consequently facilitate bringing economic rehabilitation, prosperity and peace in FATA through generating employment opportunities and sustainable jobs for the people of FATA.

The anticipated key economic sectors for FATA region are marble, granite, furniture, construction, tourism and horticulture.

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