Lahore: The government has initiated to work on a detailed roadmap to encourage growth in the SME sector, focusing on bringing millions of informal businesses into the formal fold while fostering competitiveness in the global market.
Haroon Akhtar Khan’s recent address highlights the government’s focused effort to transform Pakistan’s SME (Small and Medium Enterprises) sector, signaling a pivotal shift towards formalizing the informal economy and empowering youth and women.
Here’s a summary of the key elements of his statement:
Key Points from Haroon Akhtar Khan’s Address:
- Global Expertise for Local Development:
- The government is engaging international SME experts to bring world-class development strategies to Pakistan’s SME sector. This aligns with the Prime Minister’s vision of fostering a globally competitive business environment.
- Focus on Women, Youth, and Informal SMEs:
- The youth and women are central to the initiative, with practical measures being introduced, including financing options, business training, feasibility studies, and tax incentives.
- These measures are expected to be reflected in the upcoming budget.
- Micro-Enterprises Now Part of SME Definition:
- The definition of SMEs has been expanded to include micro-enterprises.
- Now, businesses with annual turnover of under 30 million rupees can also avail SME benefits, aiming to bring millions of small, informal businesses into the formal sector.
- Incentives to Formalize Informal Businesses:
- A significant portion of Pakistan’s economy consists of informal businesses operating from households.
- These businesses often don’t contribute to the formal economy or national growth.
- The government will introduce incentives to integrate them into the formal sector, which could fuel growth and national development.
- Plans for a Cryptocurrency Policy:
- In response to queries, Khan announced that a global crypto expert had been hired to help formulate a policy regarding cryptocurrency, addressing a growing area of interest for the youth, particularly in the IT sector.
- Investment in Technical Education:
- To build a skilled labor force, the government plans to expand technical institutions, enabling youth to acquire the skills needed to compete globally.
- This will strengthen the labor pool, which is crucial for enhancing the export potential of Pakistan’s SMEs.
Broader Impact:
- Empowerment of Marginalized Groups: The specific focus on women and youth addresses longstanding challenges related to economic participation and equality.
- Encouraging Registration of Informal Businesses: Integrating millions of informal SMEs into the formal economy will likely expand the tax base, improve transparency, and create new opportunities for growth and development.
- Global Competitiveness: Expanding the scope of SMEs to compete internationally can increase exports and open up new markets, aligning with Pakistan’s broader economic goals.
- Cryptocurrency Regulation: With the increasing interest in cryptocurrency, having a clear, regulated approach could unlock further innovation and investment in Pakistan’s digital economy.
The upcoming SMEDA Board of Directors’ meeting is expected to finalize the plan for implementing these initiatives, marking a key step in the execution of the Prime Minister’s SME development vision.
This speech is a clear indication that Pakistan’s leadership is keen on transforming the country’s SME sector into a major contributor to economic growth, with a particular focus on modernizing, formalizing, and empowering the previously neglected informal businesses.
