ROLE OF GOVERNMENT IN SME DEVELOPMENT Numerous initiatives are launched by government which shows its commitment towards enhancing

the contribution of SMEs in countrys development. Some of them are as under: 1. Small & Medium Enterprises Development Authority (SMEDA): Established in 1998 to promote growth of SME in Pak. Launched a number of initiatives to enable sustainable growth of SMEs in Pak. Some of them are: 1. Creation of conducive Policy & Regulatory environment, 2. To work towards infrastructure development & productivity enhancement projects for SMEs. Initiated programmes for induction of new technologies, provision of business development services, 3. With regard to Business Development Support SMEDA conducts a range of seminars, workshops & training programmes for managerial & technical up gradation of SMEs. 4. Launch of strategies for development of specific sectors like that of Leather & Sports sector. 5. Some special projects are also launched like Economic revitalization of KPK & FATA under which direct support is provided to local SMEs to accelerate economic recovery in the tow regions affected by crisis and flood. 2. SBP (Issues in SMEs Access to Finance) 1. Credit Guarantee Scheme was launched to ensure accessibility of financing for low end fresh & collateral deficient SMEs for Small & rural enterprises. It was introduced in March 2010 with initial seed money of 10 million pounds. 2. Various refinancing schemes were launched by govt via SBP like revitalization of SMEs in March 2010 for KPK, GB & FATA which allow banks to provide all types of financing facilities to the SMEs in target area. 3. Financing facility for Storage of Agricultural Products was launched in June 2010 to develop agricultural produce marketing and to encourage private sector to establish Silos, cold storage & warehouses etc. 4. Financing is available for purchase of new imported/ local plant & machinery for up gradation & modernization of SMEs at affordable rates. 5. SBP has launched a project to create reliable data resources if information on key SME clusters of economic importance. They will be available for use by lending institutions for identifying priority segments & also help banks develop new customized banking products for SMEs and effective lending strategies that improve SMEs access to finance.6. SBP has also launched programmes that will help aware SMEs by seminars and training programmes. 3. Securities & Exchange Commission of Pakistan (SECP)

SECP help growth of SMEs by providing them a hassle free business environment resulting in increase in incorporated SMEs. Launched E-services which quicken pace od registration of company by instantly providing availability of name, incorporation of companies & filing of statutory returns through online services. Also launched seminars. 4. Board of Investment. (BOI) Established to promote investment in all sectors of economy. The task given to it was to work to enhance Paks competitiveness & facilitating foreign and domestic investors for implementation of projects that contribute to social & economic development. It has signed MoUs with many countries tha facilitated investment to a multitude of sectors including tourism, real estate, oil refinery etc.

5. Trade Development Authority of Pakistan (TDAP) TDAP work towards increasing trade; arranging seminars, delegations, workshops, and establish training institutes

Exhibitions: Trade Development Authority of Pakistan organized and sponsored 65 international exhibitions in the year 2009-10, and supported 700 exporters to display their products in major exhibitions throughout the world. Out of these 700, more than 200 were new exporters, SMEs and Women Entrepreneurs facilitated by TDAP as a part of its strategy to encourage new comer into international trade. TDAP arranged participation of more than 100 exhibitors including 32 new exporters, SMEs and women entrepreneurs in trade fairs in Africa. As a result of this aggressive marketing strategy of TDAP, the exports to African Market grew by 22.79% during this period as compared to the same period in the previous year. For the year 2010-11, TDAP scheduled to support more than 1000 exporters to participate in 88 international fairs and exhibitions throughout the world. 30% of those facilitated by TDAP would be new exporters, SMEs and Women entrepreneurs. Training Institutes for imparting professional training to SMEs related workforce: Small and Medium Enterprise Development Authority (SMEDA) and Trade Development Authority of Pakistan (TDAP) joined hands to revive the Cutlery Institute of Pakistan (CIP), Wazirabad for providing semi-skilled workforce, common mechanical engineering facilities, cutlery designing and business advisory services to the cutlery sector. In future TDAP is planning to launch many projects which will prove very helpful for imparting professional traininig to the SME related man force. Marble and Granite Technology Institute at Karachi and Peshawar :Trade Development Authority of Pakistan in collaboration with Export Development Fund, has taken up the initiative to set up the institute to produce trained manpower to assist the industry in exporting the high value Marble & Granite products. On completion of the project, the skilled manpower will be regularly available to cater to the growing need of the industry. Institute of Leather Technology will be established at Lahore to impart short term training to workers, supervisors and entrepreneurs. It will also provide professional advisory services the exporters for process improvement, product development and international technological trends. Institute of carpet and other craft training institute at Hala. The objective of the institute is to evolve a sustained program of growth and development of both craft sector and craftsmen in an integrated manner i.e. to generate requisite knowledge, to upgrade relevant skills and to foster right attitudes in order to develop high quality, motivated human resource and change agents in a vibrant climate of experimental and innovation. A synergy between the traditional knowledge and skill set with contemporary requirements has to evolve. Estimated cost of the project will be Rs. 200 million. Seminars and workshops: One of the major tasks that TDAP has decided to perform is to organize regular workshops and seminars in which learned professionals come to educate, discuss and teach various modern skills, techniques, methods etc to the people associated with the SMEs. These seminars and workshops are arranged on diverse fields such as
Conference on Poultry and Poultry Based Products; Workshop on Rice; Brilliantly organized workshop with CBIs help

on Participation in EU Fairs which guided the participant on effective management and application in EU fairs for maximum returns; CBI-TDAP Workshop on Market Research Light Engineering/Electronics in the EU, in which Participants were acquainted with market access requirements for EU. It familiarized them with rules and regulations and how to update their sector to successfully sell in EU. The participants were very satisfied and praised the efforts of TDAP. Value Addition Meat, Conference Room TDAP, Lahore, This workshop helped participant learn how to carry out value addition in meat and developed linkages among meat producers/buyers/agencies dealing in meat and meat products.

Delegations: TDAP organized numerous outgoing delegations that help SME sector in having international orientation, get market intelligence, export opportunities, and have B to B meetings. So in recent past delegations from various SME sectors were sent to UK, Korea, Japan, Poland, Bangladesh, Czech Republic, Hungary, Australia. 6. Engineering Development Board (EDB) EDB has launched various projects for the uplift of engineering sector of Pakistan including that of; Energy Conservation projects, workshops on surgical industry, exploring prospects of local manufacturing of compact fluorescent lamps. 7. National University of Science and Technology 8. COMSATS Institute of Information Technology Both these universities focus on enterprise development and research that aids SMEs development. 9. Competitiveness Support Fund (CSF) CSF is providing support to Paks economic growth through these avenues: Providing grants for innovative business ideas, technical assistance, Financing through Venture Capital. 10. Business Support Fund (BSF) Its aim is to assist in improvement of competitiveness of SMEs and to enhance the revenue-generating capacity and profitability of emerging businesses. 11. Aik Hunar Aik Nagar (AHAN)-Rural Enterprize Modernization Project This is based on One Village One Product concept of Thailand. Launched by Govt of Pak in July 2006. Its objectives are to alleviate poverty in rural and peri-urban areas of Pakistan by supporting rural, micro and small enterprises engaged in non-farm products, such as, handicrafts, embroidery, ornaments, woodwork etc. AHAN interventions help in skill enhancement of artisans, improving product design, encouraging innovation, enhanced marketing linkages and support from microfinance institutions.

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