Key Takeaways
- Pakistan’s small and medium enterprises (SMEs) are calling for government support to diversify exports towards Africa.
- The Federal Minister for Commerce, Jam Kamal Khan, emphasized the importance of strengthening SMEs in Pakistan's manufacturing sector.
- Delegation from Gujranwala Small Chamber of Commerce highlighted regional tensions affecting traditional Middle Eastern markets.
Pakistan’s small and medium enterprises (SMEs) are facing significant challenges due to disruptions in the Red Sea and tensions in the Middle East, according to a recent meeting between Federal Minister for Commerce Jam Kamal Khan and a delegation from the Gujranwala Small Chamber of Commerce. The SMEs have called for government support to explore new markets, particularly in Africa.
During the meeting, the minister acknowledged that SMEs are crucial to Pakistan’s manufacturing sector, playing a vital role in employment generation, industrial development, and export growth. He highlighted that strengthening these businesses remains a key priority of the government.
The delegation from Gujranwala Small Chamber of Commerce emphasized the adverse impact of regional tensions on exports to traditional Middle Eastern markets such as Saudi Arabia, the UAE, Bahrain, and Kuwait. They stressed the need for exploring new destinations in Africa, where there is growing economic potential due to a rising population and demand for competitively priced products.
The minister encouraged Pakistani businesses to actively explore emerging African markets, noting that sectors like engineering, metal, home appliances, and light manufacturing could benefit significantly from such diversification. He also mentioned the government’s efforts to expedite export financing and credit guarantee facilities through the Export-Import (EXIM) Bank of Pakistan.
Participants in the meeting identified several constraints faced by SMEs, including high energy prices, taxation issues, access to affordable finance, and outdated industrial machinery. The minister assured that the government is pursuing reforms to improve industrial competitiveness and promote modernisation through better access to financing.
The delegation raised concerns about delays in sales tax refunds, shortages of recycled raw materials, and challenges faced by small manufacturers operating in the formal sector. The minister agreed on the need for improved refund mechanisms to ease liquidity pressures on exporters and emphasized the importance of balanced policies that support both export growth and domestic manufacturing.
Discussing industrial development, Jam Kamal stressed the importance of reverse engineering, automation, product standardisation, and the development of strong vendor industries. He observed that adopting internationally recognised standards and promoting industrial clusters would improve productivity, strengthen supply chains, and enhance Pakistan’s export competitiveness.
The minister also highlighted ongoing efforts to simplify regulations and reduce the cost of doing business through a high-level committee constituted under the directions of the prime minister. This committee is reviewing overlapping licensing and regulatory requirements across various ministries and departments with the objective of streamlining procedures through digitalisation and eliminating unnecessary approvals.
SMEs are the backbone of Pakistan’s manufacturing sector and play a critical role in employment generation, industrial development and export growth.
Jam Kamal Khan, Federal Minister for Commerce
