ISLAMABAD: Prime Minister Shehbaz Sharif on Friday chaired a crucial meeting on the Small and Medium Enterprises Development Authority (SMEDA), underscoring the vital role that small and medium enterprises (SMEs) play in Pakistan’s economy.
Prime Minister Sharif said that SMEs are the backbone of the country’s economic structure. He expressed concern over the inactivity of the SMEDA Board and directed its immediate reconstitution. He emphasized that the boards of all key economic institutions must be established without delay.
The Prime Minister also called for enhanced support for subcontracting in industries and urged measures to integrate Pakistani industries into the global supply chain. He instructed that steps be taken to appoint a Chief Executive Officer of the SMEDA and directed the inclusion of private sector representatives in the steering committee.
During the briefing, it was reported that the SMEDA Development Fund has been launched for the first time, with Rs 30 billion allocated over six years. For the fiscal year 2024-25, Rs 5 billion has already been disbursed.
The meeting was informed that Pakistan currently has 5.2 million SMEs, which contribute 40 percent to the country’s GDP and account for 31 percent of exports.
The SME sector also provides 72 percent of non-agricultural employment. While Rs 491 billion in bank credit has been extended to SMEs so far, there is a need to increase this amount to Rs 800 billion.
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 senior officials.
