The government has ordered a Smeda revival plan within four weeks, moving to reorganise an authority for small businesses that has lain dormant for years.
A committee formed by Prime Minister Shehbaz Sharif will submit the plan to reorganise the Small and Medium Enterprises Development Authority (Smeda), expand business support, and improve access to finance for micro, small and medium enterprises (MSMEs) across the country.
The committee is chaired by Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan. At its meeting on Tuesday, it noted that small firms needed easy access to finance, business advice and institutional support.
Smeda revival plan: what the committee found
The Smeda revival plan comes after years in which the authority stayed dormant. The prime minister formed the committee because of the importance of promoting small businesses, the meeting was told.
Small firms account for about 99 per cent of business enterprises in Pakistan and contribute around 78 per cent of employment. Those two figures explain why the revival matters far beyond the authority itself: when small firms struggle to get finance or advice, the effect reaches most of the country’s jobs.
A presentation by Smeda showed that about 61 per cent of SMEs, around 4.33 million units, were in Punjab. Sindh followed with 1.33 million units. Of the total, 3.20 million units were in retail and wholesale trade, while only 0.69 million were in manufacturing.
That split points to a clear challenge. Most small firms trade goods rather than make them, so a revival plan that only serves manufacturers would miss most of the sector.
Models studied from six countries
The meeting examined regulatory models for SME promotion in India, South Korea, Malaysia, Indonesia, the United States and Canada.
It found that successful models shared common features. These included strong central institutional coordination, digital registration, and service delivery that could grow with demand. They also included handholding and enterprise-preparation support, and partnerships with the financial system.
Mr Khan said data and research were essential to chart the future course of action. He said the reorganisation should focus on improving Smeda’s performance, expanding its outreach, and raising the quality and accessibility of its services.
He said Smeda should become more effective at addressing the practical challenges entrepreneurs face and helping businesses grow.
Why the plan matters for small firms now
The plan matters now because it arrives beside other SME efforts already under way. Feature Pakistan earlier reported on the Rs2.2 trillion SME financing target set for 2028 and on SME lending reaching Rs943 billion by June 2026.
Finance alone, however, does not solve the problems small firms face. A business also needs registration that works, advice it can trust, and an institution that answers when it asks for help. That is the gap the Smeda revival plan is meant to close.
The two-year Smeda-Alibaba programme, covered in Feature Pakistan’s report on the Shehbaz Alibaba AI projects, will give small firms access to international markets, training and e-commerce opportunities. A reorganised Smeda would be the domestic arm of that same push, reaching firms in small towns and rural communities, not just the big cities.
Mr Khan said reorganising Smeda aimed to extend its services to every small rural community and to enable aspiring entrepreneurs to benefit from government support.
The meeting was attended by Minister of State for Finance and Railways Bilal Azhar Kayani, Prime Minister’s Coordinator for Commerce and Industries Rana Ihsan Afzal, Coordinator for SMEs Rana Attique Anwar, the secretaries of industries and commerce, members of the Smeda board, and Smeda chief executive Nadia J. Seth.
The four-week deadline gives the next date to watch. When the plan lands, the test will be whether it reaches the 4.33 million small firms in Punjab, the 1.33 million in Sindh, and the firms in the rest of the country with the same speed.
Frequently asked questions
What is the Smeda revival plan?
It is a comprehensive plan to reorganise Smeda, expand business support, and improve access to finance for micro, small and medium enterprises. A prime minister’s committee must submit it within four weeks.
How big is Pakistan’s SME sector?
SMEs account for about 99 per cent of business enterprises and around 78 per cent of employment, with about 4.33 million units in Punjab and 1.33 million in Sindh.
