Prime Minister Shehbaz Sharif, chairing a pivotal meeting on the Small and Medium Enterprises Development Authority (SMEDA), underscored the essential role of small and medium enterprises (SMEs) in Pakistan’s economic landscape.
The Prime Minister labeled SMEs as the “backbone” of the economy, noting their vital contribution to national growth. Expressing concern over the inactivity of SMEDA’s board, he called for its immediate reconstitution. He emphasized that boards of all key economic institutions must be established without delay to bolster the nation’s economy.
Additionally, PM Sharif directed the promotion of sub-contracting within industries and stressed the importance of integrating Pakistan into the global supply chain. He also urged the swift appointment of SMEDA’s Chief Executive Officer and recommended the inclusion of private sector representatives in the steering committee.
During the meeting, it was revealed that the SMEDA Development Fund had been initiated for the first time, with Rs. 30 billion allocated over six years. An initial installment of Rs. 5 billion has already been released for the 2024-25 fiscal year.
Pakistan’s SME sector, comprising 5.2 million enterprises, contributes 40% of the country’s GDP and supports 31% of its exports. The sector also accounts for 72% of non-agricultural employment. Despite receiving Rs. 491 billion in bank credit thus far, the Prime Minister emphasized the need to elevate credit to Rs. 800 billion to fully support the sector.
The meeting was attended by key officials, including Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Ministers Ahad Khan Cheema and Rana Tanveer Hussain, and other high-ranking officials.
