ICCI chief for addressing challenges faced by SMEs

ISLAMABAD  –  Nasir Mansoor Qureshi, president of the Islamabad Chamber of Commerce and Industry (ICCI), has emphasised the pivotal role of small and medium-sized enterprises (SMEs) in driving economic growth and development. He stressed that addressing the challenges faced by SMEs is crucial for their development and, ultimately, for the country’s economic progress. Qureshi urged the government and relevant stakeholders to take concrete measures to resolve the key issues confronting SMEs, enabling them to realize their full potential and contribute meaningfully to the nation’s economic prosperity.

Meanwhile, the ICCI president has welcomed the launch of a simplified SME Loan Application Form, a joint effort by the Small and Medium Enterprise Development Authority (SMEDA), the State Bank of Pakistan, and the Pakistan Banks Association to address the long-standing barriers SMEs face in accessing formal financing due to complex loan application processes and low financial literacy. Introducing the simplified loan application form is a significant step towards promoting SME growth. However, Qureshi stressed that more needs to be done to achieve rapid and sustainable growth in the SME sector. He added that streamlining regulations reduces bureaucratic hurdles and encourages SME growth. Nasir Qureshi went on to say that SMEs are the economic engine of Pakistan, which contributes 40 percent of the GDP and employs nearly 80 percent of the workforce, but unfortunately, their potential to contribute to import substitution and export enhancement remained largely untapped.

Nasir Qureshi highlighted that Pakistan has over 5.2 million SMEs, accounting for approximately 90% of private businesses. Despite their significant presence, SMEs face numerous challenges, including limited access to financing, frequent power outages, and soaring energy costs, which hinder their growth and ability to create jobs. To address these issues, Qureshi emphasized the need for a supportive environment that bridges the gap between industry requirements and available skills. Organizations like SMEDA, NAVTTC, and TEVTA must be crucial in facilitating this growth.

Additionally, Qureshi suggested that SMEs’ participation in international trade shows and exhibitions should be encouraged to boost their contribution to national export revenue. This would enhance their competitiveness and promote economic development in Pakistan.

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