Post of CEO still vacant: SMEDA loses credibility in market

The Small and Medium Enterprises Development Authority (SMEDA) has started losing its credibility in the market as it failed in making payments to its vendors due to non-existence of its chief executive officer whose post is vacant for the last four months. Sources told Business Recorder that former chief executive officer Sher Ayub Khan had resigned from his office over four months ago but since then no chief executive officer could be appointed during this time.
Consequently, the authority failed to carry on its smooth functioning as every decision, be it financial or administrative, required approval of the chief executive officer.
The SMEDA had to start working on different initiatives under the public sector development programme but could not proceed due to lack of approval from the chief executive. Some of important initiatives which were required to be taken include national business development project worth Rs 2 billion, product development centre worth Rs 430 million and Sialkot Business & Commerce Centre worth Rs 500 million. Apart from these mega projects, there were so many small scale projects which could not be started on this account.
Further, hiring of staff from regular employees for the projects and necessary procurements for the projects also could not be made, the sources added.
The traditional words of "promotion of small and medium enterprises (SMEs) for being backbone of the economy" now have become only a slogan due to lukewarm attitude of the federal government which failed to appoint chief executive office in last four months, the sources said.
Though the Ministry of Industry published an advertisement in the newspaper for seeking applications about two weeks ago yet the process can take two more months for finalization of appointment of the authority's chief executive. Therefore, the working would continue to suffer for another two months and the Authority would remain non-functional for half of the year, the sources added.
The Authority not only failed in coordinating with the donors for its programmes but also could not conduct awareness seminar, workshop or training programme to support the small and medium enterprises. It is pertinent to mention that the SMEDA has also been functioning in the absence of any board of directors for the last two years which reflects the government's priority to strengthen the small and medium enterprises in the country. The government's agenda to create job opportunities stand totally exposed considering the attitude of the ministry concerned.