SMEs revival plan finalised with help of international consultancy firm A.T. Kearney
ISLAMABAD: The Ministry of Industries and Production, in collaboration with the international consultancy firm A.T. Kearney, has finalized a comprehensive business plan for the revival of the Small and Medium Enterprises (SMEs), which would soon be presented to the Prime Minister for final approval.
This was stated by the Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan while chairing a high-level meeting with the officials of the Small and Medium Enterprises Development Authority (SMEDA) and international consultancy firm A.T. Kearney.
Members of the SMEDA Board also participated in the meeting, where a detailed overview of the SME business plan was presented and discussed. Speaking on the occasion, Haroon Akhtar Khan stated that the SME business plan has been developed after extensive consultations with all relevant stakeholders, resulting in a complete and inclusive policy package.
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He emphasized that Prime Minister Muhammad Shehbaz Sharif’s vision of empowering SMEs is now translating into reality. The Special Assistant highlighted that the business plan will ensure the formalization of SMEs, enhance their productivity, and unlock the immense potential of Pakistan’s SME sector.
He noted that longstanding challenges such as limited access to credit, climate change impacts, and low productivity will be addressed on a priority basis through this plan. Haroon Akhtar Khan reaffirmed that under the direct supervision of Prime Minister Shehbaz Sharif, the government is working relentlessly to uplift SMEs and strengthen their role in national economic development.
He further informed that a detailed presentation on the SME business plan has been finalized and will be presented to the Prime Minister in the coming days. The business plan also includes special provisions to encourage and support women’s participation in SMEs, reflecting the Prime Minister’s belief that women are a key driving force of the economy. The SME business plan will span three years, and its 100 percent implementation will be ensured, Haroon Akhtar maintained.
According to the official document available with the Business Recorder, the Roadmap on SME policy and ecosystem formalization has recommended the following measures: (i) Expansion of SMERP to onboard 50,000+ SMEs; one-window regulatory linkages; e-commerce portal development. (ii) Development of next-generation SME Policy focusing on competitiveness, productivity, formalization and SME networking. Includes consultations, impact assessment, and policy drafting. (iii) National roadmap development, baseline study, capacity building, and SME help-desk services. (iv) Rollout of roadmap, stakeholder onboarding, and execution of action plan to increase SME formalization by 20 percent, and (v) Diagnostic review, mapping SME participation, and designing policy options to raise SME participation by 30 percent in procurement.
For expanding market access following steps are recommended: (i) Build bilateral relationships, delegation visits, and B2B linkages for SME export expansion. (ii) Digital platform connecting SMEs across OIC countries for trade and joint ventures. (iii) Facilitate SME participation in regional/global events and establish export agreements. (iv) Comprehensive export readiness and grant program enabling SMEs to expand internationally. (v) Digital marketplace, product cataloguing, and branding for micro and small enterprises, and (vi) Export capability building for women entrepreneurs, including exhibitions and trade delegations.
According to the document on SME Development Roadmap following measures are recommended for strengthening the SMEDA brand and operations: (i) One-window physical SME service hub for facilitation, formalization, advisory, and global SME visibility. (ii) Strengthens SMEDA’s communication, visibility, stakeholder engagement, and national awareness campaigns (Consultant firm + strategy roll-out). (iii) Improve delivery and operations across operations like Web Presence, Awareness (iv) Digital engagement strategy using Generative AI content in multiple languages. Lesson-based self-paced IVR trainings. (v) Performance mgmt. framework for SMEDA to track delivery against defined targets, improve accountability, and link reporting to outcomes/service quality: (vI) Establishes a standardized KPI dashboard across all programs to monitor progress (across regions/segments), and enable data-driven decision-making. (vii) Upgrades SMEDA’s front-line helpdesk into a standardized, multi-channel facilitation service (walk-in/phone/online) to serve SME needs and (viii) Regional delivery teams to localize SMEDA support, strengthen on-ground execution, and accelerate outreach, facilitation, and problem-solving for SMEs.
The SME Development Roadmap, deepening inclusion, has recommended the following steps: (i) Strengthen rural women’s enterprises via SHGs, training, and financing links. (ii) Provide mentoring, BDS, product development, and finance/market access. (iii) WE-focused support centers offering advisory, registration, and facilitation (iv) Provide grant support to women-led businesses for modernization and market access. (v) Comprehensive national WE empowerment framework and program deployment. (vi) Participation support for women entrepreneurs in national exhibitions and (vii) Permanent retail outlets showcasing women-led businesses’ products.(viii) Digital gateway providing information, services, and tools for women entrepreneurs. (ix) National-scale WE development: digital outreach, capacity building, and support programs. (x) Mobile/SMS/IVR-based outreach and training for women entrepreneurs. (xi) Mindset shift, advocacy, and media campaigns promoting WE participation. (xii) Re-skilling and supporting homemakers to start businesses. (xiii) WE facilitated pre-incubation, incubation, and supply-chain integration, and (xiv) Large-scale entrepreneurship capacity-building for women.
According to the document, for boosting competitiveness, the plan envisaged the following measures: (i) Support SMEs to meet global quality standards through training and certification grants. (ii) Improve product design, quality, and market readiness through technical training and design support. (iii) Provide machinery/equipment to enhance micro-enterprise productivity (iv) Training in financial management, costing, and business practices. (v) Improve and redesign products for domestic and export markets and (vi) Develop horticulture clusters with processing facilities and value chain support.
For strengthening value chains, it has recommended the following steps: (i) Development of a legal framework for subcontracting, (ii) Vendor development and industrial upgrading to integrate SMEs into supply chains. (iii) National B2B matchmaking platform for SME linkages and supply chain integration. (iv) Regional business center supporting export facilitation and market linkages, and (v) For red chilies processing centre (RCPC), Kunri – PPP model for RCPC modernization and operationalisation to enhance value addition in Sindh’s red chili, condiments cluster.
The following steps are recommended in the plan to support climate resilience in the SME sector: (i) Climate vulnerability index pilot and dashboard development, including SME circular projects, (ii) Sustainable fiber production project improving climate resilience and green livelihoods, and (iii) Enable women entrepreneurs to adopt climate-smart technologies and business models.
To address the issues related to Unlock capital & investment, the plan has recommended the adoption of the following measures: (i) Tools and training to strengthen SME financial management and credit readiness, (ii) Grants and technical assistance for productivity, compliance, and credit enhancement, (iii) Partner with banks/MFIs to provide NAVTTC/TVET graduates with small loans/grants for tools and starter equipment, enabling them to transition into micro-entrepreneurs and launch income-generating trades or services, (iv) Provide SME-level credit scoring to improve loan decision-making and (v) Assess credit demand and potential in micro-enterprise clusters.
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