SME Development Fund in the offing

Rs30b fund will help SME sector enjoy benefits of new policy

LAHORE:

The new Small and Medium Enterprises (SME) Policy, announced by Prime Minister Imran Khan, is aimed at establishing an SME Development Fund worth around Rs30 billion.

To ensure transparent and effective management of the fund, a company had been proposed to work under the Small and Medium Enterprises Development Authority (Smeda), according to a statement issued on Thursday.

“The policy has set the ground for further strengthening Smeda to ensure that benefits of the policy reach the SME sector,” it said.

To cover the expanded work ambit, the authority would have to strengthen itself through legislative amendments to the Smeda Ordinance 2002.

In this regard, it would soon initiate an institutional reform process to transform its organisational potential, the statement said.

“The capabilities of Smeda will be built in fund management, policy and strategy making, business development services, skills and expertise, emerging technologies, monitoring and evaluation, etc,” it added.

Since the authority had been assigned a pivotal role by the government in the implementation of the new policy, it would have to ensure coordination between the SMEs and government support organisations, including banks and development finance institutions of public and private sectors.

Smeda would be included in all boards and committees of provincial small industries departments, besides having representation in the State Bank of Pakistan (SBP) committee on SME financing along with an enhanced presence in donor programmes.

The authority “will also be made part of all provincial Technical Education and Vocational Training Authorities and the National Vocational and Technical Training Commission (NAVTTC) at the federal level”, it said.

SMEs have praised the registration portal (SMERP) and termed it a friendly platform acting as a one-stop facilitation point for them.

“A large number of SMEs have registered already and many are approaching Smeda after the formal inauguration of the portal” by the premier, it said.

“The registered firms are being provided with SME Cards that will enable them to have all the facilities announced by the government under the policy,” it said, adding that the facilities included tax relief, online certification, concessionary loans, participation of SMEs in international trade fairs, etc.