ISLAMABAD, Aug 23 (Alliance News): Prime Minister Muhammad Shehbaz Sharif on Friday emphasized the vital role of small and medium enterprises (SMEs) in Pakistan’s economy during a meeting focused on the Small and Medium Enterprises Development Authority (SMEDA).
Describing SMEs as the backbone of the national economy, the Prime Minister expressed concern over the non-functioning of the SMEDA Board and directed its immediate constitution.
He stressed that boards of all key economic institutions should be established without delay.
The Prime Minister also highlighted the importance of promoting sub-contracting in industries and integrating Pakistani industries into the global supply chain.
Additionally, he ordered the necessary steps to ensure the appointment of a Chief Executive Officer for SMEDA and recommended the inclusion of private sector representatives in the steering committee.
During the briefing, it was revealed that the SMEDA Development Fund had been launched for the first time, with an allocation of Rs 30 billion over six years. For the fiscal year 2024-25, Rs 5 billion has already been provided.
The Prime Minister was informed that Pakistan currently has 5.2 million SMEs, contributing 40% to the country’s GDP and 31% to its exports.
The SME sector also provides 72% of non-agricultural employment, with Rs 491 billion in bank credit already extended to the sector. However, the meeting noted that this figure needs to be increased 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 high-ranking officials.
