SME auto entrepreneurs highlight challenges to SMEDA Director

LAHORE: A delegation of SME entrepreneurs from Lahore’s auto sector met Mashood Khan, Director SMEDA, to highlight pressing challenges threatening the survival of micro and small enterprises in the industry.

Entrepreneurs expressed serious concerns over the gradual migration of documented industrial units, operational for over six decades in Lahore, to other areas due to lack of government incentives and plug-and-play facilities.

They emphasized that most SMEs do not have the financial capacity to relocate. The unplanned conversion of industrial land into housing societies poses a direct threat to employment and the livelihoods of thousands of families dependent on these businesses.

About the issue of ease of doing business for SMEs, they requested that unnecessary audits and notices from various government departments be avoided. The role of government should be that of a facilitator, not a hurdle for SMEs.

The core purpose of the meeting convened by CEO-EDB with PSML and Auto Parts Manufacturers was to build consensus among all stakeholders regarding local availability and quality of raw materials.

CEO-EDB directed that all IORC quotas for auto parts manufacturer members be maintained until PSML can fully assure its customers of its capability to meet required OEM quality and technical standards.

The issues of financing and need for Industrial Zones for SMEs were also highlighted. For micro and small enterprises, it is the need of the hour to establish industrial zones around major cities of Pakistan, particularly around Lahore, they said, adding: “The Punjab Government has recently issued notices to small industries to evacuate their factories to the outskirts of Lahore. Without proper, equipped zones, relocation is not feasible.”

Mashood Khan assured the delegation that SMEDA and SAPM Haroon Akhtar, Ministry of Industries are sincerely committed to improving conditions for SMEs in the country. He confirmed that all points raised will be presented in the next meeting with government authorities.

Copyright Business Recorder, 2026