ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed authorities to set a clear timeline for implementing reforms for small and medium-sized industries and accelerate work on an AI-driven platform to support women entrepreneurs, his office said.
Small and medium-sized enterprises (SMEs) in Pakistan constitute over 90 percent of business establishments and are estimated to contribute around 40 percent of the country’s gross domestic product (GDP) and roughly 25 percent of exports, while employing as much as 78 percent of the non-agricultural labor force.
Access to finance, however, remains a significant barrier in the Pakistani SME sector. According to a recent policy briefing, only 6-7 percent of private-sector credit is extended to SMEs.
Economists say growth in the SME sector is critical for expanding exports, processing agricultural goods and creating jobs in a country facing slow manufacturing expansion and limited credit access for small producers.
“Pakistan’s industrial development depends on the growth of household, small and medium-sized industries,” the prime minister said after he chaired a meeting on SMEs. “In developed countries, SMEs provide raw materials to large industries.”
Sharif also called for steps to enhance women’s participation in small and medium-sized industries.
“To encourage women’s participation in the SME sector, a Womenpreneurship Platform based on artificial intelligence is being established,” the statement from Sharif’s office said.
“This platform will provide comprehensive information to women regarding business sectors, as well as guidance on registration, tax matters, and skill awareness.”
A roadmap was also presented to integrate SMEs into the formal economy.
Meanwhile, the prime minister also directed that registration of household industries be encouraged to help them obtain business loans more easily, and instructed officials to ensure the earliest implementation of the Small and Medium Enterprises Development Authority (SMEDA) roadmap.
