RECORDER REPORT

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) is going to initiate the process for revising SME Policy 2007.

SMEDA’s Chief Executive Officer Sher Ayub Khan disclosed this while presiding over a review meeting here at the SMEDA head office on Wednesday. Ms. Nadia J. Seth, General Manager Policy and Planning, Fuad H. Hashim, General Manager Central Support, Sheharyar Tahir, Head, External Relations Directorate and a number of the other SME experts expressed their views on this occasion.

SMEDA chief said that the Federal Ministry of Industries & Production had notified a national steering committee consisting of public and private sector representatives for providing their input to develop the new SME Policy Framework. He said that the Policy Framework will bring fundamental reforms at SME level necessary to provide level playing field to local businesses. He further stated that all key SME stakeholders will be involved in the policy development exercise.

Rapidly changing economic environment requires policy and institutional focus that can make Pakistani SMEs competitive in international markets and fulfill the multiple agenda of employment creation, new enterprise development, increased exports and enhanced contribution to GDP, he added and hoped that the revised SME Policy framework will serve as the Government of Pakistan’s Master Plan for providing support to catalyze growth of the sector for the medium to long term development.

General Manager, Policy and Planning Division, Ms. Nadia J. Seth, stressed upon the need of innovation and research-based policy interventions across SME sector to enhance their productivity and competitiveness.

Head, External Relations Directorate Sheharyar Tahir said that technical support for policy development is being provided by USAID’s Small and Medium Enterprise Activity (SMEA). He highlighted the role of international development partners in shaping the policy through sharing international best practices and expertise through local and international consultants’ engagement.

General Manager-Central Support Fuad H. Hashim said that in most countries, SMEs constitute more than 90 percent of all enterprises and significantly contribute towards economic growth, which contribute to development in multiple ways; creating employment for an expanding labor force, providing much needed flexibility and innovation in the economy, enhancing exports and contributing to increased value addition to GDP. But, such benefits have not been realized to their full potential in Pakistan, for various reasons, he said and underlined the need for a research-based SME policy.

It is notable that the first national SME policy was approved by the federal cabinet in 2007 and the process for its revision is being started after eleven years. SMEDA envisages conducting policy workshops all over Pakistan to frame the new SME policy as per the current needs of SME sector.