Govt targets wider support for small businesses

ISLAMABAD: The government is preparing a comprehensive plan to reorganise the Small and Medium Enterprises Development Authority (SMEDA), with a focus on expanding support for entrepreneurs, improving access to finance and extending services to rural and underserved communities.

Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan said small and medium enterprises account for around 99% of Pakistan’s business enterprises and provide approximately 78% of employment. He said a committee formed by Prime Minister Shehbaz Sharif would submit its recommendations on SMEDA’s reorganisation within four weeks.

The committee has been tasked with revitalising the authority, improving its performance and strengthening its ability to support micro, small and medium enterprises (MSMEs) across the country. It has also called for a significant expansion of SMEDA’s outreach, particularly to women entrepreneurs and businesses in rural areas.

Khan stressed that small business owners must have access to financial assistance, business advisory services and institutional support at the grassroots level. He said entrepreneurs should be able to benefit from government initiatives regardless of where they live.

He noted that SMEDA had remained largely inactive for years but had been revived under the prime minister’s vision. He said the authority had considerable potential to encourage entrepreneurship, strengthen small businesses and support economic growth.

The appointment of Rana Attique as chief coordinator for small and medium enterprises was another step towards improving coordination and strengthening support for the sector, Khan added.

Members of the SMEDA board have also been included in the committee to ensure that its recommendations reflect institutional experience and the practical needs of businesses. The committee will examine international best practices and successful institutional models before preparing a reform plan suited to Pakistan’s economic conditions.

Khan said the reorganisation should make SMEDA more responsive to entrepreneurs, improve the quality of its services and address the challenges faced by small businesses seeking to expand their operations.

Strengthening the SME sector is essential for creating jobs, encouraging investment and widening economic opportunities, he said. Better access to business support and finance could help entrepreneurs establish new ventures and expand existing operations.

The meeting was attended by Minister of State for Finance and Railways Bilal Azhar Kiyani, Prime Minister’s Coordinator for Commerce and Industries Rana Ihsan Afzal, Federal Secretary for Industries and Production Ihsan Ali Mangi, Federal Secretary for Commerce Jawad Paul, SMEDA Chief Executive Officer Nadia J Seth and other senior officials.

The government aims to transform SMEDA into a more accessible and effective institution that can provide practical assistance to entrepreneurs and contribute to inclusive economic development.