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Smes of Pakistan: Syed Arshanali Shah Faheem Hussain Sario Sushmitabachani Jashwantimaheshwari

The document discusses small and medium enterprises (SMEs) in Pakistan. It defines SMEs in Pakistan as businesses with up to 250 employees, paid-up capital up to Rs. 25 million, and annual sales up to Rs. 250 million. Common SME industries in Pakistan include carpets, textiles, embroidery, jewelry, ceramics, cutlery, and woodwork. While SMEs contribute significantly to GDP and employment, they face issues such as lack of infrastructure, financing, and skills. The government has established organizations and programs to support SME development.

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MUHAMMAD JAMIL
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94 views

Smes of Pakistan: Syed Arshanali Shah Faheem Hussain Sario Sushmitabachani Jashwantimaheshwari

The document discusses small and medium enterprises (SMEs) in Pakistan. It defines SMEs in Pakistan as businesses with up to 250 employees, paid-up capital up to Rs. 25 million, and annual sales up to Rs. 250 million. Common SME industries in Pakistan include carpets, textiles, embroidery, jewelry, ceramics, cutlery, and woodwork. While SMEs contribute significantly to GDP and employment, they face issues such as lack of infrastructure, financing, and skills. The government has established organizations and programs to support SME development.

Uploaded by

MUHAMMAD JAMIL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 21

SMEs OF PAKISTAN

Syed Arshan Ali Shah


Faheem Hussain Sario
Sushmita Bachani
Jashwanti Maheshwari
FABRIKAM
Definition
Definition varies from country to country
Depends upon Asset and no of employee.

The SME Bank, SMEDA, Pakistan Bureau of


Statistics (PBS) and State Bank of Pakistan
(SBP) have defined SMEs in different ways.

The definition of SMEs in Pakistan lies on


the number of employees up to 250 people,
paid-up capital up to Rs.25 million and
annual sales up to Rs.250 million

FABRIKAM
Types of Cottage and Small
Industries in Pakistan
 Carpets
 Te x t i l e s
 Embroidery
 Jewelry
 Ceramics
 Cutlery
 Woodwork
 Sports goods
FABRIKAM
Emergence of SMEs
• F i r s t F i v e Ye a r P l a n
• 5% after independence increased to
8 % d u r i n g 1 9 6 0 ’s
• nationalization phase in 1970 after
that growth decreased to 5% again.
• 1972 small scale sector were
delegated to provences to be
managed by provincial SICs.
• SSIC
• PSIC
• SIDB
FABRIKAM
THE ROLE OF SMALL &
MEDIUM ENTERPRISES
• SME’s have Played an increasing and important role on the
industrial structure of developed and developing countries.

• SME’s contribution to GDP about 40% and 25% to export,


while employing about 80% about non agriculture
workforce.

• Small enterprises should posses 10-35 employees with 2-20


m rupees capital intact in equity.

• Medium enterprises should posses 36-99 employees with


20-40 m rupees capital intact in equity.

• .

FABRIKAM 5
Cont.

• The federal Government established Small and


Medium Enterprises Development Authority SMEDA
in 1998
• Assist employment generation and value addition to
the national income through development of the SME
sector.
• its also provide Humen resources Traning services

FABRIKAM 6
Advantages of
SMEs in Pakistan

FABRIKAM
PROBLEMS FACED BY SMALL
& MEDIUM ENTERPRISES

1. Lack of Infrastructure for SME Business

2. Absence of SME Research &Development Centers in Banks

3. High Lending Costs

4. Lack of Business Planning and Strategic Vision

5. Informal Organizational Structures

6. Low level Financial Literacy

7. Shortage of Marketing Skills/efforts on part of banks

FABRIKAM 8
HOW TO SOLVED PROBLEM
OF SME’s
• Pakistan government has now focused on the development of
small and medium enterprises.

• World Bank Group’s Ease of Doing Business Report 2019


shows that Pakistan’s global ranking has improved by 11
places to 136 out of 190 countries.

• Now government of Pakistan start to develop infrastructure,


trade, gives new scheme to SME’s employees to increase
their interest in this sector. New jobs opportunities to
employees which decrease unemployment ratio. SMEDA
develop new scheme to borrower or lender. development of
industrial clusters

• SMEDA develops program for SMEs under PSDP


FABRIKAM 9
Cont.

• SMEDA has developed 'National Business Development


Program for small and medium enterprises that will be
completed at a cost of Rs 1.955 billion under the Public
Sector Development Program

• The program is aimed at providing handholding support to


SMEs to assume an important role in the global market.

• The proposed program aims at facilitating 314,901 SME


beneficiaries, over a period of five years. As many as 3,800
training programs would be conducted under this program
that would also help obtain 500 international certifications

FABRIKAM 10
T H E P E R F O R M A N C E O F T H E S E C TO R I N T H E
CONTEXT OF CURRENT ECONOMIC SURVEY

Small and medium enterprises grant under ‘’certification


incentive programme for SMEs under PQI initiative 2025’’.its
cost 745.810 million to export based manufacturing as public
sector Development programme.

In 2017, the SME sector showed a 12% annual growth in the


stock if SMEs does not grow 15-20% per year so we run at
hurting export-based large industry.

SBP encourage the bank to lend the small enterprises.

FABRIKAM
11
 the share of trading and manufacturing sectors SMEs
at 24 billion (50pc and 13bn around 25 pc.
 The bulk of SME financing 41bn and fixed investment
got 10 bn where trade financing decline by 3bn
 The borrower below 164000 as the 177000 earlier
year.
 The three million small and medium enterprises
account for 30% of the country’s gross domestic
product.
 Multi donor trust fund 1 phase implanted in 2012 to
2017 and 2 phase in 2018 and worth 108.6 million.

FABRIKAM
• Japan investment corporation agency arranged 13
training workshop/ seminars productivity and quality
improvement and efficiency.
• During 2017 to 2018 4 year technical support to 39
factories 20 in Sindh and 19 in Punjab Which initiated
at 2 phase to JICA project.

FABRIKAM
GOVT. POLICIES FOR DEVELOPMENT
OF SME

FABRIKAM
• “ The Financial
Institutional (secured
transaction) Act
2016.”
- To a c c e s s c r e d i t f r o m
B a n k i n g s e c t o r.

FABRIKAM 15
$2“Credit Guarantee
Scheme.” (March 2010)
- U K ’s D e p a r t m e n t fo r
International
Development (DFID)
- Up to 60% of risk
coverage on credit
losses.

FABRIKAM 16
• “Refinance and CGS
for Women
Entrepreneurs”

-Risk coverage for new


or existing business.

FABRIKAM 17
“SME-Related
Refinance facilities.”
-Imported/local
machinery for cottage
i n d u s t r y.
“Prime Minister Youth
Business Loan.”
-Facilitating with
Federal government.

FABRIKAM 18
“Sindh Enterprise
Development Fund
(SEDF).”
-Launched a‘Mark-up
Subsidy and Guarantee
Facility ’

-Rice Husking Mills.

FABRIKAM 19
SME IN OTHER
COUNTRIES:
• Kenya

• In Kenya, the term changed to MSME, which


stands for "micro, small, and medium-sized
enterprises".

• We need a growth strategy based on


industrialization plans, including joint ventures
with Chinese companies, to create jobs in the
country." SME is one business segment which can
best achieve this objective.

• he economic miracle of China and India, among


other emerging markets, is largely driven by SMEs
sponsored by their growing middle classes,
FABRIKAM 20
THANK YOU

FABRIKAM

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