ISLAMABAD: A committee established by Prime Minister Shehbaz Sharif is set to present a detailed plan within four weeks aimed at restructuring the Small and Medium Enterprises Development Authority (Smeda). The initiative seeks to enhance business support and improve access to financing for micro, small, and medium enterprises (MSMEs) across Pakistan.

According to Union of Small and Medium Enterprises, the committee is chaired by Adviser to the Prime Minister on Industries and Production, Haroon Akhtar Khan. During a meeting on Tuesday, it was noted that SMEs require better access to finance and business advisory services. Mr. Khan stated that the reorganisation of Smeda is intended to extend its reach to all small rural communities, enabling entrepreneurs to take advantage of government support.

The prime minister initiated the formation of this committee in response to Smeda's prolonged dormancy, underscoring the critical role of small businesses in the economy. The meeting highlighted that SMEs constitute approximately 99% of business enterprises in Pakistan, providing around 78% of employment. A Smeda presentation revealed that roughly 61% of SMEs, or about 4.33 million units, are located in Punjab, with 1.33 million in Sindh. Out of the total, 3.20 million units are involved in retail and wholesale sectors, while only 0.69 million engage in manufacturing.

The committee reviewed SME promotion models from countries such as India, South Korea, Malaysia, Indonesia, the United States, and Canada. It was observed that successful models feature strong central coordination, digital registration, scalable service delivery, and partnerships with financial systems.

Mr. Khan emphasized the importance of data and research to guide future actions, asserting that the reorganisation should focus on enhancing Smeda's performance and expanding its service quality and accessibility. He pointed out the need for Smeda to effectively address the challenges faced by entrepreneurs and support business growth.

The meeting included Minister of State for Finance and Railways Bilal Azhar Kayani, Prime Minister's Coordinators for Commerce and Industries Rana Ihsan Afzal and Rana Attique Anwar, secretaries of industries and commerce, members of the Smeda board, and Smeda CEO Nadia J. Seth.