The federal government has decided to overhaul the Small and Medium Enterprises Development Authority (SMEDA), focusing on creating a sustainable organisational model, establishing clear five-year targets, and securing a reliable funding mechanism.
The decision was made during a high-level meeting led by the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan. The discussions centered around minimizing public sector involvement in SMEDA operations, enhancing private sector participation, and fostering a more dynamic business environment in Pakistan.
A key objective of the restructuring is to reduce government control over SMEDA, empowering private stakeholders to play a more significant role in driving SME growth. The meeting also emphasized the need to establish a sustainable support system for SMEDA’s long-term viability.
Strategic consultations with the State Bank of Pakistan were discussed, particularly addressing ongoing challenges in SME financing. The development of a practical SME financing strategy was identified as crucial to overcoming these hurdles.
The new operational model for SMEDA is being developed under a comprehensive five-year strategic framework, which aims to align the organization’s functions with market needs and improve its efficiency in supporting SME growth.
The restructuring plan includes increasing SMEDA’s human resources from 182 to 295 staff members, raising its budget from Rs740 million to Rs985 million, and creating an economic value of Rs30 billion over three years. Additionally, the plan aims to increase SME exports by $153 million and expand SME facilitation to 60,000 units within the next three years.
