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SME policy to be announced soon

By Our Correspondent
November 07, 2021

LAHORE: Small and Medium Enterprises Development Authority (SMEDA) CEO Hashim Raza on Saturday said the SME Policy, formed with due consultation with the stakeholders, would likely be launched by Prime Minister Imran Khan on November 11.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI), he revealed that a separate section has been introduced in the policy to support women entrepreneurs.

He said the regulatory regime was being eased in the policy, while Small and Medium Enterprises Development Authoritys would have to prepare only a few NOCs. Others were being abolished in the upcoming policy.

He said the government departments would be bound to give approvals to the SMEs in thirty days, while social security, labour, Punjab Food Authority, and environment departments would not visit SMEs for inspection without schedule and prior approval.

Raza agreed that lack of access to financing was the biggest challenge for SMEs, while lack of documentation and awareness were the biggest issues for the SME sector.

According to a SMEDA survey, 78 percent SMEs did not avail bank facilities because they were undocumented and had no awareness.

He said policymakers should realise that the only solution to the economic challenges was to promote and support the SMEs.

“We have to increase our production base and labour capacity,” he added.

LCCI President Mian Nauman Kabir said that LCCI and SMEDA have always maintained good working relations.

Being the premier business support organisation of the country, Lahore Chamber of Commerce and Industry has always recognised the importance of Small and Medium Enterprises Development Authoritys as the backbone of our economy, since their contribution in the GDP was around 40 percent.

According to estimates, there were well over five million Small and Medium Enterprises Development Authoritys in Pakistan and around 65 percent of the SMEs were based in Punjab.

“LCCI has also highlighted the need of providing technical and managerial trainings to the individuals associated with the SME sector,” Kabir said, adding that to increase the efficiency of Small and Medium Enterprises Development Authority sector, special steps should be taken to provide training to the SMEs in the newly emerging areas of productivity improvement, quality assurance, cost reduction and energy efficiency etc.

The role of Small and Medium Enterprises Development Authority for achieving this would be crucial, he said.