ISLAMABAD: Prime Minister Shehbaz Sharif chaired meeting on matters related to Small and Medium Enterprises Development Authority (SMEDA), emphasising crucial role of SMEs in Pakistan's economy.

He said small and medium enterprises act as back bone of country's economy. Expressing dismay over non-functioning of SMEDA Board, he directed its immediate constitution, stressing that boards of all institutions vital for country's economy, should be established without delay. Additionally, he called for promoting sub-contracting in industries and taking all possible measures to integrate Pakistani industries into global supply chain. He also ordered to take necessary steps to ensure appointment of SMEDA's Chief Executive Officer. Additionally, he also directed to include people from private sector in steering committee.During briefing, he was informed that for first time, SMEDA Development Fund had been launched for which an amount of Rs 30 billion had been allocated for 6 years.

Out of total, Rs 5 billion have already been provided for year 2024-25, meeting was told. It was informed in meeting that, there were currently 5.2 million small and medium enterprises in Pakistan, which account for 40 percent of country's GDP whereas 31 percent of country's exports depend on SMEs. Apart from non-agricultural employment, SME sector provides 72 percent of employment while some Rs 491 billion have been provided in form of bank credit for SME sector so far, but bank credit for SME sector needs to be taken up to Rs 800 billion, meeting was told. Deputy Prime Minister and Foreign Minister Ishaq Dar, Minister for Economic Affairs Ahad Khan Cheema, Minister for Industries and Production Rana Tanveer Hussain, PM's Coordinator Rana Ihsaan Afzal attended meeting.