ISLAMABAD: The government has decided to restructure the Small and Medium Enterprises Development Authority (SMEDA) with a focus on developing a viable organisational model including five-year targets and a sustainable funding mechanism.
The decision was taken here during a high-level meeting chaired by the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan. The participants of the meeting discussed restructuring SMEDA with a focus on increasing the role of the private sector and improving the overall business environment in Pakistan.
The meeting emphasised the need to minimise public sector intervention in SMEDA operations, aiming to promote a more dynamic and independent role for private stakeholders in driving SME growth. A foundational agreement was reached on enhancing the contribution of the private sector to SME development.
Participants agreed on the importance of reducing government control while establishing a sustainable support mechanism for SMEDA to ensure long-term viability.
Strategic consultations with the State Bank of Pakistan were also discussed, particularly regarding the resolution of persistent SME financing challenges. The development of a practical and result-oriented SME financing strategy was a key point of discussion.
A new operational model for SMEDA is currently under development, backed by a comprehensive five-year strategic framework. This model seeks to align SMEDA’s functions with market needs and improve its effectiveness in facilitating SME growth.
It was agreed that greater private sector involvement and a redefined structural approach will enhance SMEDA’s ability to support small and medium enterprises across the country. The proposed changes are expected to significantly improve the business climate and create new opportunities for entrepreneurship and innovation.
According to the official restructuring plan the government will increase the SMEDA’ s human resources from 182 to 295 and budget from Rs740 million to Rs985 million. As per plan, the government aimed at creating Rs30 billion economic value creations within three year. Moreover, as per plan, the exports of small and medium industry within next three years will be enhanced by $153 million. The Small and Medium Enterprises (SME) facilitation will be increased to 60,000 units.
Copyright Business Recorder, 2025
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