Prime Minister Shehbaz Sharif led a meeting on Friday to discuss issues related to the Small and Medium Enterprises Development Authority (SMEDA), emphasizing the essential role of small and medium enterprises (SMEs) in Pakistan’s economy.
The Prime Minister stated that SMEs are crucial to the strength and growth of the country’s economy. He expressed disappointment that the SMEDA Board was not functioning and ordered its immediate formation.
He stressed that all-important institutions that support the economy should have their boards established without any delay.
The Prime Minister also emphasized the importance of promoting sub-contracting in industries. He called for all possible measures to connect Pakistani industries with the global supply chain.
Additionally, he instructed that the Chief Executive Officer of SMEDA be appointed as soon as possible and that private sector individuals be included in the steering committee.
SMEDA Development Fund and SME Sector Stats
During the briefing, it was revealed that an SMEDA Development Fund had been launched for the first time, with Rs 30 billion allocated for the next 6 years. For the year 2024-25, Rs 5 billion has already been provided.
The meeting was informed that there are currently 5.2 million SMEs in Pakistan, contributing to 40% of the country’s GDP and 31% of its exports. The SME sector also provides 72% of non-agricultural employment. So far, Rs 491 billion has been provided in bank credit for the SME sector, but this needs to be increased to Rs 800 billion.
Meeting Attendees
The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, PM’s Coordinator Rana Ihsaan Afzal, and other high-ranking officials.
Conclusion
Prime Minister Shehbaz Sharif’s focus on strengthening SMEs highlights their vital role in Pakistan’s economy. By revitalizing SMEDA and boosting support for SMEs, the government aims to drive economic growth, create jobs, and better integrate Pakistan into the global market.
