ISLAMABAD: The government has finalised a comprehensive three-year business plan for the small and medium enterprises (SME) sector, envisaging wide-ranging reforms aimed at formalisation, export growth, access to finance and productivity enhancement, with the plan set to be presented to Prime Minister Shehbaz Sharif in the coming days.
The roadmap, prepared by the Small and Medium Enterprises Development Authority (SMEDA) with technical support from international consultancy A.T. Kearney, proposes an overall outlay of around Rs18 billion up to 2028.
The plan was reviewed on Monday at a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, attended by members of the SMEDA Board and officials involved in drafting the strategy. Officials said the business plan was developed following consultations with stakeholders across sectors and regions, and seeks to address long-standing structural constraints faced by SMEs.
According to available documents, the strategy outlines eight broad reform areas, including SME formalisation, export promotion, value-chain integration, access to finance, women entrepreneurship, climate resilience and institutional strengthening of SMEDA. The plan projects that, if fully implemented, SME contribution to GDP could rise to over Rs50 trn, while employment in the sector could increase to 26m by 2028. SME exports are projected to grow from existing around $3 bn to $4bn over the same period.
A key component of the roadmap is the expansion of the national SME registry and the rollout of one-window regulatory and facilitation mechanisms, aimed at bringing a larger number of informal enterprises into the documented economy. The plan also proposes preferential public procurement options to increase SME participation in government contracts, alongside the development of a new MSME Policy framework focusing on productivity and competitiveness.
Access to finance remains a central focus, with proposals for SME credit scoring models, financial literacy programmes and targeted grants. Cluster-based lending assessments and partnerships with banks and microfinance institutions are also envisaged.
The strategy places particular emphasis on women-led enterprises, with multiple programmes proposed for digital outreach, skills development, grant support and dedicated facilitation centres. Donor-supported initiatives involving the Asian Development Bank, FCDO and JICA form a significant part of this inclusion agenda.
As per the documents, the export promotion measures include an SME export assistance programme, international B2B networking platforms, participation in regional and global trade events, and the development of sector-specific value chains, particularly in agro-processing. The plan also incorporates climate-focused interventions to help SMEs meet emerging environmental compliance requirements in export markets.
Addressing the meeting, Mr Khan said the business plan aims to formalise SMEs, improve productivity and unlock the sector’s economic potential, adding that issues such as limited access to credit, low competitiveness and climate-related risks had been prioritised. He said the government, under the prime minister’s supervision, intended to ensure full implementation of the plan over its three-year duration.
While the roadmap includes detailed targets and performance indicators, officials acknowledged that its success would depend on timely funding, coordination with provinces and regulators, and strengthening SMEDA’s delivery capacity at the regional level.
