Haroon Akhtar calls SMEs driving force of Pakistan’s export-led growth

By Shams Abbasi

ISLAMABAD, Jun 27 (APP): Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Friday said that nations which empower entrepreneurs, small and medium enterprises (SMEs), and innovators ultimately emerge as global economic leaders, stressing that Pakistan’s future prosperity depends on strengthening the SME sector.

He expressed these views while addressing the “World MSME Day 2026” ceremony jointly organized by the Islamabad Chamber of Small Traders and Small Industries (ICSTSI) and the Small and Medium Enterprises Development Authority (SMEDA).

The event was attended by President ICSTSI , Mr .Awais Satti, Federal Secretary for Industries Humaira Zia Mufti, SMEDA Chief Executive Officer Nadia Jahangir, Usman Saifullah and representatives of chambers of commerce, entrepreneurs and SMEs from across the country.

Haroon Akhtar said the government is committed to achieving export-led economic growth through the development of SMEs, innovation and entrepreneurship. He noted that SME financing has witnessed significant progress, with financing reaching Rs584 billion by March 31, while 53 percent of businesses received enhanced financial support, leading to expansion of industries and creation of employment opportunities.

He said the government has launched initiatives worth Rs30 billion to promote SMEs, adding that Prime Minister Shehbaz Sharif has placed special emphasis on strengthening the sector by ensuring easier access to finance, land, taxation reforms, improved ease of doing business and resolution of issues related to the State Bank of Pakistan.

“Every great economy has a story of entrepreneurs. Those who create jobs are the true builders of nations,” Haroon Akhtar said, adding that entrepreneurs bring prosperity through innovation, determination and hard work.

Paying tribute to Pakistan’s entrepreneurs, innovators and business dreamers, he said the country possesses immense entrepreneurial talent in every province, while women entrepreneurs are playing an increasingly important role in economic development and deserve greater encouragement and opportunities.

Highlighting the contribution of SMEs, he said Pakistan has around seven million SMEs, contributing nearly 40 percent to the country’s GDP, around 30 percent of exports and employing nearly 80 percent of the non-agricultural workforce.

He said SMEDA is actively working to strengthen the SME ecosystem by improving access to finance, promoting formalization and documentation of businesses, and enhancing their competitiveness in domestic and international markets.

Haroon Akhtar emphasized that formalization of businesses is essential, as registered enterprises can easily obtain bank financing and benefit from government support programmes.

He said the government is connecting Pakistani SMEs with international markets through digital platforms and has signed a Memorandum of Understanding (MoU) with Alibaba to facilitate online exports and e-commerce opportunities.

He added that Pakistani SMEs are also being encouraged to participate in regional and international trade expos, while efforts are underway to facilitate visa access for exporters. Outreach programmes have also been expanded to Gilgit-Baltistan, Balochistan and Khyber Pakhtunkhwa to connect regional industrial clusters with national and global markets.

Referring to Pakistan’s export potential, Haroon Akhtar said the country’s handmade products, furniture, honey, sports goods from Sialkot and other traditional industries possess enormous value in international markets and require greater institutional support.

He further announced that the government will provide SMEs with better liquidity, easier financing, tax facilitation, land availability and regulatory reforms to improve the overall business environment.

Speaking on the occasion, President Islamabad Chamber of Small Traders and Small Industries Awais Satti said SMEs contribute nearly 40 percent to Pakistan’s GDP and around 35 percent to national exports, making them the backbone of the country’s economy.

He stressed the need to reduce the cost of doing business, improve ease of doing business, ensure affordable energy prices, simplify documentation procedures and address issues relating to labour laws, the Capital Development Authority (CDA) and access to finance.

Awais Satti called for maintaining interest rates at single digits to facilitate business expansion and appreciated SMEDA’s continued support for the SME sector.

He also noted that the Islamabad Chamber was Pakistan’s first dedicated SME chamber and that similar chambers have now been established in around 20 cities across the country, reflecting the growing importance of the SME sector in Pakistan’s economic landscape.