Small and Medium Enterprises Development Authority in collaboration with Lahore Economic Journalists Association organises capacity building workshop at Aiwan-e-Iqbal

Lahore, August 12, 2015 (PPI-OT): Economic Development of the developed nations is based upon the growth of SME sector, which can be the only way to achieve economic prosperity also in Pakistan and the media should give priority to the SME development agenda at par with politics.

It was observed by Mr. Muhammad Alamgir Chaudhry, Chief Executive Officer, Small and Medium Enterprises Development Authority (SMEDA) while addressing a capacity building workshop organized by SMEDA in collaboration with the Lahore Economic Journalists Association (LEJA) today at Aiwan-e-Iqbal.

Mr. Muhammad Riaz Chaudhry, President LEJA headed the group of economic reporters that attended the workshop. CEO SMEDA was accompanied by Mr. Haroon Ahmad Khan, GM, Business and Sector Development, Mr. Mairaj Anees Arif, GM, Policy and Planning and Dr. Naeem Rauf, GM, Central Support division on this occasion.

CEO SMEDA said that the present government’s manifesto aimed at vigorous industrialization through SME development, as the SME sector was a proven engine of growth for employment. The SME sector is, in fact, a back bone of economy in Pakistan with 3.2 million SMEs in the formal sector and presence of innumerable SMEs in the informal sector, he said adding that 65% of the total SMEs in Pakistan are situated in Punjab, 18% in Sindh, 14% in Khyber Pakhtunkhwa, 2% in Baluchistan and 0.6% in Islamabad.

He further said, over 40% of Pakistan’s total GDP; US$ 240 billion, comes from the SME sector alone. Similarly, 46.46% of the total exports and surprisingly 80% of the total employments are being contributed by SME sector in the country.

The SMEs create high number of jobs in the lowest investment. For instance, the cost of job creation in a Garment unit of about 200 workers, being an SME based sub-sector of the Textile sector, is approximately Rs.70, 000 per job, whereas, the cost of per job in the Spinning Unit, being a large industry of the Textile sector is about Rs. 1.1 million, he added.

CEO SMEDA told that the government, taking cognizance of the SME development, created Small and Medium Enterprises Development Authority (SMEDA) in October 1998, which has been evolving multiple initiatives including sector development strategies, business development services, common facility centres, training and handholding of the SMEs.

He informed that the five-year SME Development Plan chalked out by SMEDA last year has attracted government attention because of presenting a number of initiatives for job creation through development strategies of 13 potential sectors. The plan is targeted to generate 10 million new jobs by establishing 2,70000 new SMEs to be resulted into an increase of about $ 120 billion in GDP and an addition of national exports worth US$ 36 million in next five years, he said.

The economic reporters were informed on this occasion that SMEDA, despite being a very lean government organization, had given optimal results in SME development. SMEDA has so far entertained 91,311 walk-ins at RBCs apart from developing 170 pre-feasibility studies of various sectors, 285 tailor-made business plans and 2,335 training programs held with 100,0290 total participants in 75 cities of the country. SMEDA services and projects have mobilized a total investment of about Rs.28 billion up till now.

It was also brought into notice of the economic reporters that the world economies were making heavy investments on their SME development institutions so as to provide conducive environment to their SMEs for rapid and sustainable growth. For instance, the per capita investment to be made by Japan, Korea and Brazil on their SME development institutions is US $ 78.52, US $ 70.12 and US $ 7.24 per SME respectively.

Similarly, Turkey is investing on its SMEDA @ US $ 0.53 per SME and India is spending @ 0.09 US dollar per SME on its SME development department. As compared to the given facts, SMEDA, in Pakistan is currently operating with just 95 employees out of the 195 approved head count and the per capita investment to be made by government on it is US $ 0, 01 only.

For more information, contact:
Liaqat Ali Gohar
DGM (Admin. and PR)
Small and Medium Enterprises Development Authority (SMEDA)
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex,
Egerton Road, Lahore
Tel: +92-42-111-111-456
Fax: +92-42-36304926-7