SMEDA holds consultative session to align industrial stitching units project with Uraan Pakistan

LAHORE: The Small and Medium Enterprises Development Authority (SMEDA) conducted a consultative session with stakeholders from the textile and garment manufacturing sector to align the second phase of its Industrial Stitching Units project with the government’s Uraan Pakistan programme. The initiative aims to boost exports through SMEs.

The session was presided over by Chief Executive Officer of SMEDA Socrat Aman Rana and was attended by various private sector stakeholders, including representatives from the All Pakistan Textile Mills Association (APTMA), the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), and the Pakistan Hosiery Manufacturers Association (PHMA). Officials from the Ministry of Industries and Production and the Ministry of Planning, Development and Special Initiatives also participated via video link.

SMEDA’s CEO highlighted that the 1000 Industrial Stitching Units project was approved by the government in 2018 to provide matching grants (60:40) for machinery costs to new business startups as well as existing small and medium enterprises (SMEs) to establish industrial stitching units. The first phase of the project, which has been considered a success, is set for completion by June 30, 2025. SMEDA is now actively engaged in shaping the PC-1 for Phase II in line with Uraan Pakistan’s objectives.

In Phase II, 350 new units will be established, compared to the 150 units targeted in Phase I. Furthermore, while Phase I primarily catered to the domestic garment sector, Phase II will focus on export-oriented units, with grants covering 100 per cent of the cost. The grant size for Phase II has also been increased from Rs1.8 million to Rs5 million, supporting approximately 50 machines capable of handling export orders.

During his presentation, Project Director Muhammad Raza shared insights on the impact of Phase I. He reported that 150 units had been facilitated nationwide, with 76 in Punjab, 35 in Sindh, 17 in Khyber Pakhtunkhwa and Balochistan, and one in Gilgit-Baltistan. He also noted that Phase I had a positive impact on employment, generating 1,208 new jobs and promoting women’s entrepreneurship, as 41 per cent of the supported stitching units were owned by women.

Private-sector participants acknowledged that the first phase of SMEDA’s Industrial Stitching Units project was highly beneficial for small and medium-sized textile manufacturers. They commended the transparency of the grant approval process and the technical support provided by SMEDA. Several viable suggestions were also proposed for Phase II.

It is notable that Phase II will cater to multiple textile export sectors, including readymade garments, fashion apparel, hosiery, knitwear, bedsheets, traditional textiles, leather garments, denim manufacturing, gloves, towels, sports goods and canvas products. In contrast, Phase I primarily supported hosiery manufacturing, such as T-shirts, polo shirts, dress shirts and basic home textiles.