Commerce minister vows regulatory reforms, industrial support for SMEs

ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan on Sunday reaffirmed the government's commitment to simplifying regulations, promoting industrial development, and expanding Pakistan's manufacturing base to support small and medium enterprises (SMEs).

The minister shared these views during a meeting with a delegation from the Islamabad Chamber of Small Traders and Small Industries (ICSTSI), which raised issues related to SMEs, taxation, industrial infrastructure, ease of doing business, and export promotion.

The delegation welcomed the State Bank of Pakistan's recent revision of the SME definition, calling it a positive step that would allow more businesses to qualify for financial support and formal sector incentives.

Jam Kamal said the government aims to reduce unnecessary regulatory hurdles and modernise business processes through digitalisation and institutional reforms. He said outdated procedures and overlapping regulations should be gradually removed to improve the ease of doing business.

He added that efforts are underway to simplify business registration through a more integrated approach, allowing entrepreneurs to complete regulatory requirements before starting commercial operations. Bringing more businesses into the formal economy, he said, requires facilitation rather than added compliance burdens.

The delegation noted that many small businesses remain self-financed and avoid formal registration due to complicated procedures, repeated audits, and compliance costs. The minister said expanding the tax base through voluntary documentation, rather than placing greater pressure on existing taxpayers, remains a key policy objective.

Participants called for dedicated small industrial zones in Islamabad, equipped with electricity, gas, water, and road access, noting that many small manufacturers currently operate from residential areas and informal workshops due to the high cost of formal industrial units. Jam Kamal agreed that organised industrial estates for SMEs would improve productivity, product quality, and employment opportunities.

The meeting also touched on Pakistan's growing food industry and the expanding role of e-commerce and digital delivery services. The minister said the food and hospitality sectors have become significant contributors to employment and hold strong growth potential.

The delegation urged the government to build a modern slaughterhouse in Islamabad, noting that an 8-hectare site has already been identified and planning completed, though the project remains delayed due to administrative and environmental issues. They said such a facility would improve hygiene, food safety, traceability, and the quality of halal meat exports.

Jam Kamal acknowledged the importance of strengthening Pakistan's livestock value chain, noting that better use of animal by-products such as hides, bones, fats, and blood could generate additional economic value while reducing environmental waste.

The Chamber also proposed developing a 100-acre industrial project through a public-private partnership involving the federal government, the Punjab government, and the private sector. Jam Kamal welcomed the idea and encouraged the business community to bring forward commercially viable, investment-ready proposals.

He said public-private partnerships, technological advancement, and industrial diversification would be key to strengthening Pakistan's manufacturing sector, boosting exports, and creating sustainable employment. 

The minister reaffirmed that the Ministry of Commerce would continue engaging with the business community to identify practical solutions and build a more competitive, export-oriented economy.