Lahore, November 18, 2014 (PPI-OT): The SME sector of Pakistan can be strengthened by promoting joint ventures with Chinese SMEs. It has been observed by Mr. Shah Faisal Afridi, President Pak-China Joint Chamber of Commerce and Industry in a statement issued here today.
Referring to the present government’s exclusive efforts to reinforce business relations with China, he said that the untiring efforts of present government had entered the Pak-China friendship into a new era, where a lot of Chinese investment companies had come up to join Pakistan in various fields of industrial and commercial sector. “It’s now the job of business community to move forward to avail of the lucrative business opportunities to be offered by China.
However, President PCJCCI urged the government to provide a conducive environment for rapid growth of new SMEs and allowing consistence survival to the old SMEs in the country. He said that the SME sector is now doubt an engine of growth and innovation for the economy, but absence of the easy access to finance has frustrated the development of this sector in Pakistan. The SME sector in Pakistan represents over 90% of all enterprises, employs 75% of the non-agricultural workforce and contributes 30% towards the national GDP, said Afridi.
He further elaborated that in terms of total goods exported in the world market, Pakistan’s SME sector had a share of 30%, India (40%), China (68%) and Japan (38%).
Whereas, in terms of non-farm employment, the share of Pakistan’s SME sector is 80%, which is less than China’s (82%) but higher than India’s (35%), he said adding that Pakistan is the second largest producer of buffalo milk, the third largest producer of cotton , fifth largest country for the occurrence of Gemstones, 4th largest Livestock population, which shows that Pakistan is enriched with a huge potential of economic growth and needs nothing but a progressive generation of SMEs to transform these resources into business.
Faisal Afridi said that SMEs allow a large number of entrepreneurs and self-employed population to survive and exist; therefore empowerment of this sector should be prioritized by conquering the challenges faced by this potent sector. In this regard, Faisal Afridi proposed a four step plan as implemented by China for development of its SMs.
As a first step of the plan, he demanded policy measures to enhance the cost competitiveness of SMEs by rationalizing the regulatory burden, providing adequate infrastructure and business support services and ultimately giving an easy access to financing through formal sector.
In the second step, the government needs to take initiative to enhance quality competitiveness among SMEs by developing entrepreneurial skills and cover deficiencies in production management, technical knowhow and business planning, Afridi said and demanded to initiate the programs envisaging quality training for human resource development and unleashing the growth Potential of SMEs.
The third step would require a support mechanism comprised of the business development and financing institutions to ensure sustainability in the SME development process, President PCJCCI said and concluded with the fourth step of his plan by suggesting joint ventures with SME’s of other countries such as China, USA, Germany, etc.
For more information, contact:
Wardah Ali Gohar
Pakistan China Joint Chamber of Commerce and Industry (PCJCCI)
Mega Tower, 309 – 6th Floor,
Main Boulevard, Gulberg II,
Lahore, Punjab – Pakistan
Tel: +92-42-35777460-02, +92-42-37032203, +92-42-35874353