ISLAMABAD: A meeting concerning the Small and Medium Enterprises Development Authority (SMEDA) was presided over by Prime Minister Muhammad Shehbaz Sharif on Friday. He emphasized the vital role that SMEs play in Pakistan’s economy. According to him, small and medium-sized businesses are the backbone of the national economy.
The prime minister, expressing disappointment at the SMEDA Board’s inaction, ordered its quick constitution, emphasizing the need for boards of all institutions essential to the nation’s economy to be constituted as soon as possible. In addition, he demanded that enterprises encourage subcontracting and that every effort be made to incorporate Pakistani industries into the global supply chain.
In addition, the prime minister gave the order to conduct the required actions to guarantee the appointment of the SMEDA’s CEO. Furthermore, he instructed that members of the business sector be added to the steering group.
The prime minister was informed during the briefing that the SMEDA Development Fund had been established for the first time, with a six-year allocation of Rs 30 billion. The meeting was informed that, of the amount, Rs 5 billion had already been allocated for the year 2024–2025. During the conference, it was revealed that there are 5.2 million small and medium-sized businesses in Pakistan, which make up 40% of the nation’s GDP and are responsible for 31% of the nation’s exports.
In addition to employment outside of agriculture, the SME sector accounts for 72% of all employment. To date, the SME sector has received bank credit worth around Rs 491 billion; however, up to Rs 800 billion still needs to be extended, according to information presented at the conference.
Deputy Prime Minister and Minister of Foreign Affairs 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 pertinent high officials were present at the meeting.
