The document discusses small and medium enterprises (SMEs) in Pakistan. It defines SMEs based on employee count and business worth, noting that over 99% of businesses in Pakistan are SMEs. SMEs make up a significant portion of the economy, employing over 78% of the non-agricultural labor force and contributing over 40% to GDP. However, SMEs face challenges such as lack of infrastructure, access to financing, and interactions with government policies and regulations. The Small and Medium Enterprise Development Authority (SMEDA) was established to facilitate business development services, financial support, and technical training to support the growth of SMEs in Pakistan.

1. Credit Managment
Presented to Sir Tahir

2.  SMEDA defines SME’s on the basis of Labor force
and business worth
 Micro 1 ----------10 employees
Up to ------2m
 Small 10---------35 employees
2-------------20m
 Medium 36---------99 employees
20---------40m

3.  Characteristics of SME’s
 Privately held small business (manage and work by its
own)
 large scale (proprietor and workers)
 No or few management lawyers
 Limited liability
 Independence in decision
 Scale of operation (limited market share)
 Few and unskilled labor
 Can easily adopt the changes (in developing market)

4.  3.2 million business units in Pakistan
 Over 99% business units employ less than 99 persons i.e. 3.16
million SMEs
 Work to reduce the unemployment and poverty in the economy
 Generate 78% of non-agri sector employment to labor force
 Direct Contribution to GDP over 40%, despite of financial and
other resources constraint
 Generate 25% of Manufacturing Export earnings
 contribute140bn to export
 The GOP statistics shows that SMEs sector recorded an
impressive growth of 14.7% during 1987/88 – 1996/97

5.  GOVT efforts toward SME’s
◦ SMEDA (small and medium enterprise development
authority)
 Was established in October 1998 under the provision of
ministry of industries and production
◦ The objectives of SMEDA is to;
 Facilitation of Business Development Services to SMEs
 Formulate GOVT and fiscal Policies to encourage the growth of
SMEs in the country
 Conducting sector studies and analysis for sector development
strategies
 Set up and manage a service provider’s database including
machinery and supplier for SMEs.
 Providing financial support to SME’s
 E.g. Prime minister loan scheme
 Provide technical support
 vocational tanning and seminars to make aware from local and
international market

6.  Textile/Apparel
Ginning Technology Up-Gradation
Program Lending For Power Looms
Computer Aided Design Centre (Common Facility Centre-
Sialkot)
Designing Institute for Garments (Peshawar)
Accessories Sector Study
Fisheries
Program Lending Boat/Engine Modification, Gwadar District
Establishment Of Shrimp Farms
Fish Processing Facility In Gwadar (Feasibility Study)
 Granite & Marble
Export Warehouse Marble (Azakhel KPK)
Establishment of Model Quarry and Training Institute Marble
Joint Ventures and Technology Transfer Arrangements (KPK)

7.  Formation of Punjab industrial corporation(
PSIC)
 Established in 1970 for promotion of small scale SME
 Small industrial board of KPK
 Established in 1972
 Directorate of industries in Balochistan
 Established in 1976

8.  Govt. & SME Interaction
 Taxation
 Finance
 Labor Legislation
 Human Resource Development
 Technology
 Market & Industry Information
 Lack of Infrastructure
 Environmental issues
 Social compliance issues

9. Building a Conducive Environment
Proposing and facilitating changes in Policy and Regulatory
Environment
Reducing the Cost of Doing Business
Facilitating Government-SME Interface
Developing Sectors and Clusters
Sector Studies, Strategies and Implementation
Cluster Development
Common Facility Centers (CFCs)
Provision and Facilitation of Services
Investment Facilitation
Technology, Training, Finance, Business Information, Marketing, and
legal support
Productivity and Competitiveness Improvement