SMEDA launches 10-year development plan

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) has launched a ten-year cluster-based development plan for the growth of the SME sector.

Federal Secretary for Industries and Production Dr Fakhar e Alam Irfan unveiled the plan at a ceremony arranged by SMEDA on Friday (June 28) to observe International Micro, Small and Medium Enterprises (MSME) Day.

The federal secretary said that “our nation’s economic landscape thrives on the dynamism of small and medium enterprises (SMEs), which play a pivotal role in driving growth, innovation and job creation. He noted that the ten-year cluster-based plan for SMEs include five sectors: fruit and vegetable processing; e-bike; pharmaceutical; sea foods; and marble and granite.”

He added that the studies on these sectors are a result of the collaboration between SMEDA and the Ministry of Planning, Development, and Special Initiatives, guided by the consultations with the private sector.

“The plan has been meticulously charted based on the selected sector’s potential for growth in exports and employment, which also aligns with our strategic trade policy framework (STPF) for 2020-25,” he said adding that the given facilitative cluster-based development plan is the key to unlocking the tremendous potential within the country’s SMEs, propelling Pakistan towards a path of lasting prosperity.

According to him, the recommendations put forth in the reports are all pertinent and their implementation will shape a better future of the country’s SME sector. To achieve all this, he called for collaboration between the government, businesses, and citizens through regular consultations, feedback mechanisms, and transparency. He hoped that the visionary roadmap crafted by SMEDA will enhance exports and employment in the country.

Earlier, Chief Executive Officer of SMEDA Socrat Aman Rana explained SMEDA’s role in the economic development of the country and highlighted the potential of the five clusters in the plan. He said that the potato cluster can generate $339 million by value addition and the marble and granite cluster can achieve an annual value-addition of $48 million.

The seafood cluster’s exports of $456 million can multiply manifold; the e-bike cluster can surpass its current installed capacity of 1.3 million units; and the pharmaceuticals sector can become a globally preferred market, surpassing its FY22 exports of $268.94 million, he added.

The CEO also acknowledged the government’s support for SMEDA’s development initiatives including the establishment of a Rs30 billion SME fund; the development of the SME credit rating systems to improve access to finance; and the launch of a robust national women entrepreneurship policy to economically empower women and the youth.

Regarding SMEDA’s future plan, he said, “we aim to create one million new enterprises, generating six million jobs and contributing an additional $3 billion in exports over the next five years. With these initiatives, SMEs’ share in the GDP is projected to increase to 44 per cent, adding Rs540 billion to the economy.”