DEVELOPMENT of industry and economy of any country, Small and Medium Enterprises (SMEs) serve as backbone that provides jobs to the masses and is essentially a driver of growth. The SME sector is greatly contributing to the development of countries such as China, India, Japan and Malaysia. However, Pakistan is yet to fully exploit the potential of SMEs and it can only be done by following prudent policies on part of the government.
It is good to see that present government, which had promised to provide ten million jobs to the youth, is according some importance to this sector. Prime Minister chaired a meeting on Saturday in which he tasked his economic team to focus on the promotion of SME and construction sectors. The PM was also informed that a 3-year SME policy is being finalised and that Small and Medium Enterprises Development Authority (SMEDA) CEO will be appointed by December. As regards the policy, this should be framed after threadbare discussions with relevant stakeholders especially those who are running industries. The focus of this policy should be linking small and medium industries with large-scale industries. The way automobile sector’s vendor industry is providing quality parts to automobile sector, we need to promote similar vendor industries in textile and other industrial sectors. SMEDA and SME banks should establish special clusters like Women shawls, motor pumps and manufacturing of fans so the youth can establish small and medium industries and earn their livelihoods rather than running from pillar to post looking for a job.
The government’s recently launched ‘Kamyab Jawan’ Programme could prove to be very significant in uplifting and transforming the SME sector. As loans up to five million rupees will be provided under this programme, youth should be encouraged to use the loan for establishment of small industries and production units instead of using them for opening mere stores only. This course will help the country bolster its exports and significantly reduce its imports. If PM Imran Khan is interested in fulfilling the promise of providing millions of jobs to the youth, his focus should remain on making SMEs and Kamyab Jawan successful platforms.
