National Productivity Organization (NPO) in collaboration with Asian Productivity Organization (APO)-Tokyo, Japan invites grant application from Covid-19 affected SMEs .

The assistance by NPOs should focus on two key activities:
a. Strengthening institutional and managerial capabilities of firms/organizations and developing and/or increasing the skills and competency of workers/staff by introducing new productivity knowledge, tools, techniques, or methodology imparted through consultancy, technical assistance, mentoring, and other hands-on methods.
b. Providing equipment that strengthens the capacity of targeted SMEs and/or critical sectors.

1. Covid-19 effected SMEs operating in the following sectors: i) Construction ii) Textile iii) Education iv) Hospitality (Hotels & Restaurants) v) Marble vi) Travel vii) ICT viii) Transport ix) Health x) Agro Food and processing xi) Manufacturing x) Beauty parlor and hair saloons.
2. Having valid NTN and Registration of SME/Business by relative authority (If Applicable).
3. Must be doing business for at least one year as one of the following:
     a. Sole proprietor.
     b. Registered Partnership/AoP/Company.
     c. Un-registered Partnership.
4. Must ensure 30% in kind contribution in the proposed activity/project.

Download application form and submit along with requisite documents (typed including SME's Cover Letter) to NPO Headoffice,11th Floor, Shaheed e Millat Secretariat, F-6/1, Islamabad on or before 11th October 2021.

1. The budget limit for a single project is from minimum Rs. 150,000/- upto maximum Rs. 1,000,000/-.
2. SMEs may apply for more than one project.
3. Grants are limited in number in the phase-I, if any funds are saved, the grants will be offered in phase-II.

The allocated funds may cover the following expenses in three categories:

i. Resource persons

• SMEs may request for overseas and local resource persons to conduct capacity-building activities.
• For overseas resource persons, the funds may be used to pay honoraria, daily subsistence allowances, and travel expenses.
• For local resource persons, the funds may be used to pay honoraria and local logistics related expenses.

ii. Equipment

• SMEs may request for purchase of fixed or consumable goods including the associated professional services that support capacity-building activities.

iii. Logistics/operational expenses

• The funds may cover local logistics-related expenses such as meeting rooms, accommodations, and other costs to support meetings, conferences, transportation, site visits, etc.
• They may also be used for other local service costs to support activities, including hiring temporary agents to assist NPOs.

1. Costs related to after-sales service, damage and warranty claims, etc. for the purchased equipment.
2. Costs for operating and maintaining the equipment.
3. Costs for constructing or renting the necessary space for the installation of the equipment.
4. Costs for manpower or hiring or deploying staff to operate the equipment.
5. Costs for providing financial assistance to the selected beneficiaries.
6. Personal expenses for NPO staff involved in coordinating or managing the project.
7. Costs for purchasing souvenirs, gifts, or meals for any parties involved in the project.
8. Rental charges for NPO facilities.

1. The SME focal person is responsible for proper utilization of the funding grant as per approved components.
2. Program ownership and implementation will be the responsibility of the SME.
3. The NPO monitoring team reserves the right to visit the hosting SME for monitoring of programs/equipment as per schedule. The recommendations of monitoring team should be observed by the hosting SME.
4. Grants are sanctioned to be utilized for the specific purpose as per award letter.
5. In case of any change in the proposed plan of activity/equipment purchase, the NPO must be intimated immediately.
6. In case of replacement of approved RPs, the NPO must be intimated immediately or else the funding for the replaced RPs may not be reimbursed.
7. No payment shall be made in advance to the SMEs for training/RPs and logistics. The grants are reimbursed only as per procedure given in Section-J;
8. For equipment, the SMEs are allowed to either claimed in reimbursement or request for an advance. In case of reimbursement mode, the procedure at Section-J shall apply; otherwise, the advance payment demand of SMEs shall be processed in the following manner:
   1. Upon the request of SME, after approval of grant, on the company letterhead.
   2. NPO shall process the request and may require submission of a bank guarantee/ or legal/surety bond/ or any other additional document as per NPO format. The amount will be released in the following manner;
   1. 30% amount will be released in advance after submission of invoice.
   2. 40% amount on delivery.
   3. 30% amount after installation and inspection by NPO team.
9. For the equipment, NPO and SME shall enter into agreement that the initial ownership of equipment shall lie with the NPO for at least one year. NPO shall monitor proper utility and usage of equipment after purchase/installation during this time. Upon satisfactory report, NPO shall issue certificate of clearance and the equipment will be transferred in the name of SME as its asset. In case of unsatisfactory report, NPO may remove the equipment.
10. Any cost beyond the defined limit shall be borne by the SME for the given budget head.
11. The SME focal person shall submit the reimbursement claims and final report within 4 weeks after completion of purchase/activity.
12. The NPO guidelines must be complied with in letter and spirit.

The NPO funding to SMEs is highly competitive. The grant is awarded based on the following factors:
• Strength of the program proposal.
• Relevance of program/training with the needs of the sector, and benefit for the socio-economic growth.
• Professional competence of invited speakers/presenters.
• Cost effectiveness for the said activity.

1. The funding for the training/RPs, logistics and equipment (if not claimed as advance) will be reimbursed upon provisioning and clearance of all financial documents.
2. The reimbursement claims/adjustment should be filed within 4 weeks after the activity/purchase of equipment, failing which the grant may be withdrawn.
3. The SMEs may not claim funding reimbursement unless they have NPO grant approval for the said activity/purchase of equipment.
4. Funding will be reimbursed only in the approved budget heads as mentioned on the NPO grant approval and according given limit.
5. The focal person will provide funding reimbursement claim duly verified (signed & stamped).
6. The focal person will provide grant utilization report (signed & stamped).
7. Tax deduction on payments will be applicable as per government rules.
8. Following supporting documents must be provided the reimbursement claim:
   1. Invoices against each expenditure under each budget head incurred as per the approved budget; duly verified by the accounts section of SME concerned and endorsed by the focal persons
   2. Invoices/Valid receipts of fixed, consumable equipment and stationary items.
   3. All invoices/vouchers/receipts must be written in English; or translations of documents need to be provided that are not originally written in English.
9. Grant is reimbursed in favor of the SME owner or his/her nominee.