Islamabad: Prime Minister Shehbaz Sharif has issued directives for the creation of a steering committee and the formation of a board for the Small and Medium Enterprises Authority (SMEDA), focusing on enhancing the role of SMEs in Pakistan’s economy.

According to Ministry of Information and Broadcasting, during a meeting held in Islamabad, Prime Minister Sharif emphasized the importance of small and medium enterprises (SMEs) as the backbone of the nation’s economy. He expressed dissatisfaction with the currently non-functional board of SMEDA and outlined immediate actions to appoint a Chief Executive Officer and include private sector representatives in the steering committee, which he will chair.

The meeting highlighted several key initiatives and financial commitments, including a development fund of thirty billion rupees set aside for SMEDA over six years. It was noted that Pakistan’s 5.2 million SMEs contribute 40 percent to the GDP, and 31 percent of the country’s exports rely on these enterprises. Furthermore, while 491 billion rupees have been extended in bank credit to SMEs, there is a targeted increase to 800 billion rupees to further empower the sector and integrate it into the global supply chain.