Cottage industries and SMEs: PM ties Pakistan’s industrial future to SME ecosystem growth

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed authorities to expedite the formal registration of cottage industries and Small and Medium Enterprises (SMEs), as part of a wider push to revitalise the industrial sector and improve access to finance.

Chairing a high-level meeting, the prime minister linked the country’s industrial future to the development of its SME ecosystem, particularly in rural areas.

He cited the role such enterprises play in advanced economies, where they serve as critical suppliers of raw materials and components to larger industries.

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Sharif directed the Small and Medium Enterprises Development Authority (SMEDA) to draw up a clear implementation timeline for its restructuring roadmap, and stressed the urgency of execution.

“Our industrial development cannot proceed without unlocking the potential of small and cottage industries,” he added.

He expressed support for expanding training programmes to help rural SMEs engage in value-added agricultural processing, and welcomed new efforts to boost women’s participation in the sector.

Officials briefed the prime minister on SMEDA’s restructuring efforts, including the establishment of offices in Azad Kashmir and Gilgit-Baltistan – moves that have been welcomed by local chambers of commerce.

A new board of directors, comprising largely private sector experts, has also been constituted, and the appointment of a new chief executive officer (CEO) is expected shortly.

Among the key initiatives under discussion was the development of an AI-powered “Womenpreneurship Platform,” designed to support female entrepreneurs with information on business registration, tax compliance, and skills training.

Federal Minister for Economic Affairs Ahad Cheema, Climate Change Minister Dr. Musadik Malik, and Minister for Information Ataullah Tarar, along with special assistant Haroon Akhtar and other senior officials, attended the meeting.

Officials said the meeting also reviewed a roadmap for bringing informal SMEs into the formal economy, highlighting progress in lending, capacity building, and collaboration with the private sector.

They added that the latest push signals a broader government effort to formalise thousands of unregistered businesses – a crucial step as the country looks to stabilise its economy, broaden its tax base, and improve access to credit.

Copyright Business Recorder, 2025