ABSTRACT
National SME Policy 2021 aims to promote a globally competitive and innovative SME sector in Pakistan that generates high-value jobs and encourages SMEs to target value-added exports. The policy is designed to support SME growth with an integrated framework that includes access to credit, regulations and tax regimes, skills, industrial infrastructure, and promoting entrepreneurship. The SME sector is a crucial contributor to Pakistan's economy, accounting for nearly 40% of the GDP and 25% of exports, with major exporting sectors including textile, IT and ITES, agro and food processing, light engineering, surgical instruments, sporting goods, leather, footwear, and furniture, mostly consisting of SMEs. The policy is focused on creating an enabling and business-friendly environment by simplifying regulations and instituting a regime that allows for easy entry and exit of start-ups. Additionally, the policy aims to address the demand- and supply-side constraints of the SME market, including market access, women entrepreneurship, and access to public procurement. The policy also recommends a unanimous definition of SMEs and the creation of a National Database of SMEs through a voluntary registration on the SME Registration Portal. To ensure implementation, the institutional framework comprises of the National Coordination Committee (NCC) on SMEs Development, SMEDA's organizational strengthening, the SME Registration Portal, census of economic establishments, advocacy for SMEs, and SMEDA's presence in key regulatory arenas. With these interventions, the SME sector in Pakistan is expected to increase its contribution to GDP, employment, and exports over time.
