What the government decided
A committee formed by Prime Minister Shehbaz Sharif will put forward a full plan within four weeks to reorganise the Small and Medium Enterprises Development Authority (SMEDA), the federal body meant to help small firms, and to widen business support and access to finance for micro, small and medium enterprises (MSMEs) across the country.
The panel is chaired by Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan. At its meeting on Tuesday in Islamabad, members stressed that small businesses need simpler routes to credit, practical business advice and stronger institutional backing.
Mr Khan said the reorganisation is meant to push SMEDA’s reach into every small rural community so that people starting businesses can use government support. The prime minister created the committee after SMEDA had sat largely idle for years, recognising how important small firms are to the economy.
Why SMEs matter in Pakistan
Officials were told that SMEs account for about 99% of business enterprises in Pakistan and contribute around 78% of employment. Those figures explain why the revival of SMEDA is being framed as a jobs and entrepreneurship priority, not only as an administrative fix.
A SMEDA presentation mapped where firms sit geographically and by sector. Roughly 61% of SMEs — about 4.33 million units — are in Punjab, with about 1.33 million in Sindh. Of the national total, about 3.20 million units are in retail and wholesale, while only about 0.69 million are in manufacturing.
Mr Khan said data and research must guide the next steps, and that reorganisation should raise SMEDA’s performance, widen its outreach and make its services easier to use. He added that the authority should focus on the day-to-day hurdles entrepreneurs face and on helping firms grow.
What models the panel looked at
The meeting reviewed how other countries organise SME support, including India, South Korea, Malaysia, Indonesia, the United States and Canada. Members noted that stronger systems often share a few traits: clear central coordination, digital registration and services that can scale, close mentoring of new firms, and tighter links with banks and other lenders.
Strengthening SMEs was described as essential for creating jobs, encouraging entrepreneurship, opening economic opportunities and supporting inclusive growth. The discussion treated finance access, advisory services and institutional reform as a single package rather than separate fixes.
Who was in the room
Alongside Mr Khan, the meeting included Minister of State for Finance and Railways Bilal Azhar Kayani, Prime Minister’s Coordinator for Commerce and Industries Rana Ihsan Afzal, Coordinator for SMEs Rana Attique Anwar, the secretaries of industries and commerce, members of the SMEDA board, and SMEDA Chief Executive Officer Nadia J. Seth.
The next concrete step is the committee’s written plan, due within four weeks, covering how SMEDA should be reorganised and how support for MSMEs should be expanded nationwide.
Aasan alfaaz mein
Sarkar ne SMEDA ko dobara chalane ke liye committee bana di hai. Yeh committee char hafte mein plan degi ke chhote businesses ko loans aur guidance kaise milen. Pakistan mein aksar businesses chhote hain aur bohot se logon ko inhi se rozgar milta hai. Agar yeh plan kaam kare to gaon aur shehar ke naye business wale sarkari madad zyada asani se le sakenge.
