- Orders immediate constitution of SMEDA, other vital institutions’ boards
- Directs all possible measures to integrate Pakistani industries into global supply chain
ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Friday emphasized that small and medium enterprises (SMEs) act as the backbone of the country’s economy and expressed dismay over the non-functioning of the SMEDA Board, directing for its immediate constitution.
Chaired a meeting on matters related to the Small and Medium Enterprises Development Authority (SMEDA), the premier emphasized the crucial role of SMEs in Pakistan’s economy, saying that small and medium enterprises (SMEs) act as the backbone of the country’s economy.
PM Shehbaz directed that the SMEDA Board should be immediately constituted, stressing that boards of all institutions vital for the country’s economy, should be established without delay.
He also called for promoting sub-contracting in industries and taking all possible measures to integrate Pakistani industries into the global supply chain.
The prime minister also ordered to take necessary steps to ensure the appointment of the SMEDA’s Chief Executive Officer.
Additionally, he also directed to include the people from the private sector in the steering committee.
During the briefing, the prime minister was informed that for the first time, SMEDA Development Fund had been launched for which an amount of Rs 30 billion had been allocated for 6 years. Out of the total, Rs 5 billion have already been provided for the year 2024-25, the meeting was told.
It was informed in the meeting that, there were currently 5.2 million small and medium enterprises in Pakistan, which account for 40 percent of the country’s GDP whereas 31% of country’s exports depend on the SMEs.
Apart from non-agricultural employment, SME sector provides 72% of employment while some Rs 491 billion have been provided in the form of bank credit for the SME sector so far, but the bank credit for the SME sector needs to be taken up to Rs 800 billion, the meeting was told.
The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, PM’s Coordinator Rana Ihsaan Afzal, and other relevant high officials.
Proposal for closure of Utility Stores, replacement with a new system
Meanwhile, Prime Minister Shehbaz Sharif sought proposals for shutting down the state-owned Utility Stores Corporation (USC) and replace it with a new system.
The prime minister also called for proposals within two weeks for an alternative system in place of the Utility Stores.
The government was mulling to give cash amounts to BISP consumers of the Utility Stores.
In the meanwhile, the Utility Stores have stopped sale of subsidized items to the BISP consumers.
The Utility Stores Corporation is a state-owned enterprise that was founded in 1971 and which operates chain stores throughout the country that provide basic commodities to the general public at prices which are lower than the open market because the government subsidizes them.
It approximately has nearly 15,000 employees and 5,939 store outlets across Pakistan.
It may be mentioned here that the government had already decided to abolish five federal ministries. The ministries on the chopping block were Information Technology, Kashmir Affairs, Science and Technology, Industry and Production, and Health Services.
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