SME Sector in Pakistan

Qadeer Qayyum (Pakistan)

SME Sector in Pakistan

Contents of the slides

I. History & Background
II. How SMEs are defined in Pakistan
III. Role of SMEs in Economic Development
IV. Specialized Institutions for SMEs
V. Issues of SME Sector in Pakistan
VI. Role of Govt. for development of SME Sector
VII. Various SME Sectors of Pakistan

I. History & Background

Independence

movement 1947
Islamic Republic of Pakistan
6th most populous country in the World,
over 200 (M)
36th largest in terms of area, i.e. 796095
km2

II. How SMEs are defined in Pakistan?

SME Definition (SBP)

Type of
Business

a) Fixed Assets
Excluding
Land &
Building (Rs.
M)

b) No. of
Employees

c)
Turnover/Sales
(Rs. M)

Manufacturing

100

250

300

Trade

50

50

300

Service

50

250

300

SBP SME Prudential Regulations:

Firms fulfilling a) and c) will be categorized as SMEs
Credit needs of up to a max of Rs. 75 (M) from a single F.I and collectively
may go up to Rs. 150 (M)
Public limited companies are excluded from the scope of above definition

III. Role of SMEs in Economic Development

Role of SMEs in Economic Development

3.2

million business units in Pakistan

Generate
Direct

78% of non-agriculture sector employment

Contribution to GDP over 30%

Generate

25% of Manufacturing Export Earnings

Contribute

35% in Manufacturing Value addition

IV. Specialized Institutions for SMEs

Specialized Institutions for SMEs in Pakistan

SMEDA
SME Bank
Business Support Fund (BSF)
Provincial Small Industries Corporation (PSIC);
Various Microfinance Banks(e.g. Kashaf, Assasa,
Barac etc.)

V. Issues of SME Sector in Pakistan

Most common issues of SMEs in Pakistan

Lack

of skills, Guidance & Regulatory Infrastructure

Absence

of Financial Management

Hesitation

to disclose information

Financing

from Banks

Labour

Legislations

Human

Resource Development

Social

Compliance issues

Intellectual

Property Rights

VI. Role of Govt. for development of SME

Sector

Role of Government for development of

SMEs
Establishment

of Credit Guarantee scheme

Establishment

of SME Ombudsman

Prime

Ministers Self Employment Scheme

Prime

Ministers Youth Business Loan

SME Association
Sunder

of Pakistan

Industrial Estate

VII. Various SME Sectors of Pakistan

Some SME Sectors of Pakistan

Gems

& Jewelry

Marble

& Granite

Dairy
Sports

Goods

Furniture
Fisheries

Some SME Sectors of Pakistan

Cotton
Flour
Rice

Ginning Yarn

Mills

Husking

Beverage
Surgical

Industry

Instruments

Consumables
Textiles

References

www.sbp.org.pk

Google

Wikipedia

Statistical Survey of Pakistan

Economic Survey of Pakistan

Ministry of Pakistan web

Quarterly SME Finance Review 2014

SME Sector in Pakistan

Your Questions are encouraged if any

Special Thanks :

Professor Alfredo Suvelza

SME Sector in Pakistan