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Enabling Reforms for Creative & Social Entrepreneurship in
Pakistan
Dr. Vaqar Ahmed
Why SDPI is doing this?
Capacity
Development
Advocacy
& outreach
Research
• We have a thriving startup culture in
Pakistan
• Are the enterprises graduating beyond
startup phase?
• Are Pakistani enterprises integrating in
value chains abroad?
• Are Pakistani enterprises becoming
exporters?
Case for reform
• Who can become an entrepreneur?
• How inclusive is the entrepreneurship
culture?
• Are the micro women-led enterprises
comfortable with incorporation,
registration and borrowing processes?
• Are women-led enterprises growing?
Are they becoming exporters?
Case for reform-II
What is the situation on ground?
• Micro, small and medium enterprises
(MSMEs) incur formalization costs
higher than peer economies
• MSME’s face 56 different taxes and
levies annually compared with average
of 23 in the region
• MSME’s faced 68 withholding tax
provisions that create cashflow issues
• MSME’s are not graduating/not
becoming exporters.
Reform Design (2014-18)
• Addressing the binding constraints to
growth of MSMEs
• Institution-specific response
• Can’t be done without a public-private
dialogue approach which has bipartisan
support (e.g. Charter of Economy)
• SDPI’s Board and Management
Proposed a country-wide programme
which can address institutional barriers
to enterprise growth in Pakistan.
Program Methodology (2014 – ongoing)
Identification
of Themes
Detailed
Desk Review
Evidence
Preparation
YEAR-1
Compilation
of Evidence
Mass
Awareness
Campaign
Public Private
Consultations
YEAR-2
Compendium
Document
Completed
Economic
Agenda for
Elections 2018
Focused
Roundtables
YEAR-3
PPD
Consultations
Champions
Created and
Improvements in
Evidence
Continuation of
PPD but with
Private Sector
Leadership
Sustained
PPD
Sectoral Focus
e.g Textile, IT,
Medical
Instruments
YEAR-4*
`
Orientation of
political
representatives
Creation of Local
Network
Partners
Key
interventions
Private
sector-led
PPD
Support to
creative and
social
economies
Supporting
MSMEs in
regional
integration
Helping
enterprises
become
exporters
Methodology for 2018-20
Agriculture sector
development
Manufacturing &
industrial exports
Energy sector
Information and
communications
technology
The programme also has a sectoral focus
Improved debate on
economic issues at the
Federal and Provincial
Level
Mainstreaming women-
led, social businesses
Improved evidence and
research base with more
indepth surveys
Prioritized focus on high
impact export oriented
sectors
Improved doing
business rank for
Pakistan
Successful interventions
in public sector e.g.
Centre for Social
Entrepreneurship
Expected Outcomes 2020 and beyond
Develop a database of
Social and Creative
Enterprises
Updating binding
constraints faced by
SCEs/MSMEs
Support/Operationalize
Centre for Social
Entrepreneurship at the
Planning Commission
Ensure support for SCE in
5 Year Plan
Provincial plans and
strategies
Procurement Rules
(PPRA)
Annual Budgets
Private Member Bills in
Federal and Provincial
Governments
Immediate Targets
Way Forward/Concluding Thoughts
• Helping public sector in better understanding of current SCE
landscape in Pakistan
• Allowing the public sector to understand how they may design
reform interventions through important programmes such as
CSE/PM Youth Programmes/Digiskills/NIC/ORICs.
Thank You
www.sdpi.org | www.sdpi.tv

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Enabling Social Entrepreneurship

  • 1. Enabling Reforms for Creative & Social Entrepreneurship in Pakistan Dr. Vaqar Ahmed
  • 2. Why SDPI is doing this? Capacity Development Advocacy & outreach Research
  • 3. • We have a thriving startup culture in Pakistan • Are the enterprises graduating beyond startup phase? • Are Pakistani enterprises integrating in value chains abroad? • Are Pakistani enterprises becoming exporters? Case for reform
  • 4. • Who can become an entrepreneur? • How inclusive is the entrepreneurship culture? • Are the micro women-led enterprises comfortable with incorporation, registration and borrowing processes? • Are women-led enterprises growing? Are they becoming exporters? Case for reform-II
  • 5. What is the situation on ground? • Micro, small and medium enterprises (MSMEs) incur formalization costs higher than peer economies • MSME’s face 56 different taxes and levies annually compared with average of 23 in the region • MSME’s faced 68 withholding tax provisions that create cashflow issues • MSME’s are not graduating/not becoming exporters.
  • 6. Reform Design (2014-18) • Addressing the binding constraints to growth of MSMEs • Institution-specific response • Can’t be done without a public-private dialogue approach which has bipartisan support (e.g. Charter of Economy) • SDPI’s Board and Management Proposed a country-wide programme which can address institutional barriers to enterprise growth in Pakistan.
  • 7. Program Methodology (2014 – ongoing) Identification of Themes Detailed Desk Review Evidence Preparation YEAR-1 Compilation of Evidence Mass Awareness Campaign Public Private Consultations YEAR-2 Compendium Document Completed Economic Agenda for Elections 2018 Focused Roundtables YEAR-3 PPD Consultations Champions Created and Improvements in Evidence Continuation of PPD but with Private Sector Leadership Sustained PPD Sectoral Focus e.g Textile, IT, Medical Instruments YEAR-4* ` Orientation of political representatives Creation of Local Network Partners
  • 8. Key interventions Private sector-led PPD Support to creative and social economies Supporting MSMEs in regional integration Helping enterprises become exporters Methodology for 2018-20
  • 9. Agriculture sector development Manufacturing & industrial exports Energy sector Information and communications technology The programme also has a sectoral focus
  • 10. Improved debate on economic issues at the Federal and Provincial Level Mainstreaming women- led, social businesses Improved evidence and research base with more indepth surveys Prioritized focus on high impact export oriented sectors Improved doing business rank for Pakistan Successful interventions in public sector e.g. Centre for Social Entrepreneurship Expected Outcomes 2020 and beyond
  • 11. Develop a database of Social and Creative Enterprises Updating binding constraints faced by SCEs/MSMEs Support/Operationalize Centre for Social Entrepreneurship at the Planning Commission Ensure support for SCE in 5 Year Plan Provincial plans and strategies Procurement Rules (PPRA) Annual Budgets Private Member Bills in Federal and Provincial Governments Immediate Targets
  • 12. Way Forward/Concluding Thoughts • Helping public sector in better understanding of current SCE landscape in Pakistan • Allowing the public sector to understand how they may design reform interventions through important programmes such as CSE/PM Youth Programmes/Digiskills/NIC/ORICs.