SMEDA urged to formulate strategy

ZULFIQAR AHMAD

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday said that SMEDA can play a key role in rural economic development, calling for a comprehensive strategy to ensure that all rural residents, especially women, can benefit from its interest-free loan programme.The prime minister, while chairing a meeting of Small and Medium Enterprise Development Authority’s (SMEDA) steering committee, said that the government is working on a priority basis to promote small and medium businesses.

“Our government is working on a priority basis to promote small and medium businesses, ensuring they have the necessary resources and support to thrive,” he added.

Sharif directed the authorities to develop a comprehensive policy to encompass micro enterprises to create an inclusive financial ecosystem for the rural population, especially women.

He directed SMEDA to recruit skilled professionals from the market, ensuring that the workforce meets international standards and is compensated fairly according to market rates.

“Professional training of labour is vital for the SME sector’s sustainability and growth,” he said, stressing the need for equipping the workforce with modern skills and technologies.

In an ambitious move to streamline vocational training efforts, he directed to merge all federal vocational training institutions into a single entity.

In a briefing to the prime minister, the SMEDA officials said that on the directions of the prime minister, micro enterprises have been made part of the SME sector and a comprehensive policy is being formulated in this regard.

In a briefing to the prime minister on reforms in SMEDA, the officials said that on the directives of the prime minister, there has been an increase in private sector representation on the SMEDA board.

The meeting was informed that this shift is intended to foster a more collaborative approach to developing policies that directly benefit small and medium enterprises.

The prime minister was informed of several initiatives being launched, including a robust performance management framework and an export assistance programme to help SMEs penetrate international markets.

“A strategy is being formulated in SMEDA to equip the workforce with skills training and modern technology. A plan is being formulated to make SMEDA’s portfolio more effective and widening.”

The meeting was informed that on the directives of the prime minister, the Ministry of Commerce and SMEDA are working together to identify relevant companies regarding exports.

For the SME sector, a financial literacy programme is being launched, for which, the recruitment of experts has been completed, the meeting was informed, noting export assistance programme is being launched to increase exports of the SME sector.

A financial literacy programme is also in the pipeline, aimed at equipping SME owners with the necessary knowledge to manage their finances effectively and make informed business decisions. Besides, a legal framework is being drafted to facilitate sub-contracting within the SME sector, ensuring that businesses can operate efficiently while adhering to regulatory standards.