Small and Medium Enterprises Development Authority of Pakistan

SMEDA

Small & Medium Enterprise

Development Authority

Hailey College of Banking & Finance Page 1

SMEDA

Introduction

Small and Medium Enterprises Development

Authority – SMEDA

Premier institution of the Government of Pakistan under Ministry of Industries. SMEDA

was established in October 1998 to take on the challenge of developing Small & Medium

Enterprises (SMEs) in Pakistan. With a futuristic approach and professional management

structure it has focus on providing an enabling environment and business development

services to small and medium enterprises. SMEDA is not only an SME policy-advisory

body for the government of Pakistan but also facilitates other stakeholders in addressing

their SME development agendas.


SMEDA

SMEDA OBJECTIVES

1. Formulate Policy to encourage the growth of SMEs in the country and to advise the

Government on fiscal and monetary issues related to SMEs.

2. Facilitation of Business Development Services to SMEs.

3. Facilitate the development and strengthening of SME representative bodies’

associations/chambers.

4. Set up and manage a service provider’s database including machinery and

supplier for SMEs.

5. Conducting sector studies and analysis for sector development strategies.

6. Facilitation of SMEs in securing financing.

7. Strengthening of SMEs by conducting and facilitating seminars, workshops and

training programs.

8. Donor assistances for SME development of SMEs through programs and projects.

9. Assist SMEs in getting international certifications (such as UL, CE, DIN, JIS,

ASME, KS, etc.) for their products and processes.

10. Identification of service opportunities on the basis of supply/demand gap.


SMEDA

Board of Directors

1. Minister of Industries & Production Chairman

2. Secretary, Ministry of Industries & Production Member (Ex-officio)

3. Secretary, Finance Division. Member (Ex-officio)

4. Secretary, Ministry of Commerce Member (Ex-officio)

5. Chairman, Federal board of Revenue Member (Ex-officio)

6. Chief Executive Officer, SMEDA Member

7. Engr. Adeel Rauf, CEO, Khyber Match Industry, KP. Member

8. Mr. Muhammad Salim, Ex-Chairman, PPAM, Lahore. Member

9.Mr. Zulfiqar Thaver, President of Union for Small and

Medium Enterprises (UNISAME), Karachi.Member

10

.Mrs. Aamna Taseer, Director Zaiqa Channel, Lahore. Member

11

.Dr. Abdul Nasir Kasi, CEO Agro Pak, Quetta. Member

12

.Mr. M. Akram Malik, Ex-Federal Secretary. Member


SMEDA

Organogram


SMEDA

Services

• Financial Services

• Industry Support Program

• Information Resource Centre - IRC

• Legal and Contracting Services

• Technical Services

• Training Services

• Women Entrepreneurship Initiatives

1. Financial Services

Financial Services (FS) functions with in the Business and Sector Development Services

(B&SDS) of SMEDA. As the name implies, FS is responsible for all direct and indirect

activities that fulfill the objective of providing SMEs with improved access to business

development services.

Financial Services not only implements its own initiatives to design and implement

programs but also plays a supportive and advisory role to other departments of SMEDA.


SMEDA

Banking Products & Services

Upon analyzing queries received at SMEDA helpdesk facility and our interaction with

sector stakeholders, it has been highlighted that SMEs require easy access to finance.

Therefore, creating awareness of SME specific products and services being offered by

banks among SMEs is considered an important measure by us to enhance SMEs access to

finance.

Financial Services adopts the following mode of reliable information dissemination:

Financial Services collects and compiles information on a periodic basis from various banks

about their products designed for SMEs. This information is then assimilated as per SME

understanding and displayed on SMEDA website in a user friendly format as a searchable

database and can be accessed throughBanking Products-Online Database

Trainings, Seminars & SME Financing Helpdesk.

To increase SME understanding on various ‘finance’ related issues, we conduct awareness

seminars and trainings to disseminate information on SME financial services and products

available, ways to bridge the gap between SMEs and banks, accounting and bookkeeping

issues, etc. These seminars not only increase SMEDA outreach into the sector but also

highlight problems faced by SMEs while approaching banks; which are later addressed by

SMEDA and discussed on various forums.

SMEDA, in collaboration with banks periodically conducts Helpdesk for SME Financing

where bank representatives evaluate SME loan requests and SMEDA staff handholds

eligible SMEs through loan processing and documentation processes.

Supportive Role

1. Financial Analysis

Financial analysis is an important section of the comprehensive sector studies developed

internally by SMEDA. Financial Services is responsible for preparing this section; broad

parameters include:

Performance: Historical performance of the sector in terms of its financial viability


SMEDA

Competitive Analysis: Various cost structures and value addition processes practiced

in the sector

Sourcing of Financing: Analyze financing modes available and best suited for the

sector

2. Financial Modeling

To ascertain financial feasibility of individual SME businesses as per request of clients

approaching SMEDA, Financial Services prepares extensive financial projections using

comprehensive models. These financial models are “live “models providing flexibility to

the user to evaluate viability of a proposed strategy under numerous scenarios.

3. External

Financial Services works very closely with Financial Institutions (FIs) in designing

financing schemes for SMEs. Moreover, the department designs programs and services, in

line with SMEDA objective, to support FIs by promoting their SME friendly facilities to

elevate the capacities of small and medium businesses.

Advisory Services

Carrying the core mandate of SME development, other institutions seek recommendations

and guidance from SMEDA prior to developing SME facilitating schemes. In this regard,

FS provides information related to financial conditions of the industry; prepares reports

backed by relevant historical statistical analysis and provides necessary relevant data as

needed.

2. Industry Support Program


SMEDA

The manufacturing industry in Pakistan is mostly labor intensive with a low level of

automation having high defect rates and low efficiency levels. As a result, it is facing

serious problems in increasing, or even sustaining its share in the global market, causing

unemployment in different major industrial sectors. The situation is worsening due to

current energy shortfall. The increasing input costs and decreasing profit margins are

causing threats to manufacturing; among others, the survival of Small and Medium

Enterprises (SMEs) is becoming difficult day by day.

The manufacturing sector of Pakistan has been recognized as a main engine of economic

growth. An increase in competitiveness of the industrial sector especially good performance

in export markets is therefore crucial for the national economy. Presently, the

manufacturing sector is in dire need of productivity improvement at mass level along with

efficient utilization of available energy resources in order to survive in the competitive

environment of local and international markets.

SMEDA has initiated an Industry Support Programme (ISP) since 2004 with the objective

to transfer technical expertise and knowledge to local industry through involvement of

International and Local Experts.

Industry Support Programme operates in collaboration with different international

organizations like Japan International Cooperation Agency (JICA), German International

Cooperation (GIZ), Training & Development Centers of the Bavarian Employers’

Association (bfz- Germany), Asian Productivity Organization (APO- Japan), Senior

Experten Service (SES-Germany), United Nations Industrial Development Organization

(UNIDO) and World Bank for its various initiatives. Through international organization,

ISP is offering different services to member mills of its local partners like Pakistan Hosiery

Manufacturers Association (PHMA), Pakistan Readymade Garments Manufactures &

Exporters Association (PRGMEA), All Pakistan Textile Mills Association (APTMA), All

Pakistan Textile Processing Mills Association (APTPMA), Pakistan Association of

Automotive Parts and Accessories Manufacturers (PAAPAM) and Pakistan Foundry

Association (PFA) and others.


SMEDA

Through ISP, SMEDA has been providing technical guidance and consultancy to industrial

sectors in the areas of Productivity Improvement, Quality Assurance, Cost Reduction and

Energy Efficiency. This Programme has been facilitating different industrial sectors

including Textiles, Auto Parts, Foundry, Fan, Furniture, Jute, Leather Footwear, Food

Processing etc.

To ensure the success of Industry Support Programme, an Industry Support Cell (ISC) at

SMEDA was established in April 2004. The main objectives of establishing this cell are the

capacity building of SMEDA staff and to ensure the continuity of different initiatives.

ISC consists of professionals who work closely with foreign experts for the development

and upgradation of local industry.

3. Information Resource Centre - (IRC) Library

SMEDA Information Resource Centre (IRC) has been established to cater to the

information needs of SMEs and stakeholders from both the public and private sectors. IRC

maintains a collection of more than 3400 books and CD-ROMs/DVDs besides subscribing

leading newspapers and more than 20 journals of international repute on diverse business

sections and related fields. A number of full text online journals are also available for SMEs

and researchers on different fields of knowledge. IRC collection consists of

databases, directories, reports, yearbooks, annual reports, and loose-leaf material that are

available for easy retrieval through latest library management tools. Hard format of training

programs conducted by SMEDA are also available in IRC. SMEDA IRC collection is

increasing by an aggregate 10 % every year.


SMEDA

SMEDA-IRC serves as an information repository for entrepreneurs, research students,

academicians and other business stakeholders. IRC is information resource sharing partner

with a number of public & private organizations. It acquires information material from

partner organizations in case of non availability of specific resources.

SMEDA IRC offers:-

Library Catalogue

Conducive environment for reading and research

Free of cost reference services

Online Public Access Catalogue (available on intranet)

Proactive information dissemination services

Facility of photocopies, print outs on subsidized charges

Free web surfing

IRC services for SMEs:-

provision of list of importers, exporters and traders

provision of Pre-feasibilities Studies and Regulatory Procedures

provision of information regarding custom tariffs for imports & exports

know-how guides for new business start-ups

provision of articles from various journals and newspapers subscribed by SMEDA

IRC.

provision of the contact details of business establishments in selected field

provision of statistical data on various sectors of the economy

provision of up-to-date trade related statistics

availability of SMEDA publications

customized information to SMEs

IRC regularly subscribes:-

PC-TAS (SITC & HS)

CD-ROM database developed by International Trade Centre provides five years’ trade

statistics globally

CBI Market Surveys (in CD-ROM)

CBI stands for Centre for the Promotion of Imports from the developing countries

IRC regularly subscribes surveys, conducted by CBI, of European Union markets.


SMEDA

International Directory of Importers by Interdata, USA (both in hard & soft form)

This directory provides an up-to-date contact detail of importers globally.

Jamal’s Yellow Pages of Pakistan (both in hard & soft form)

Contains information regarding contact details of business, industry, embassies, banks

etc. in Pakistan

4. Legal and Contracting Services

We add value to the business of Small and Medium Entrepreneurs (SMEs) through

facilitation in:

Resolving legal problems through service providers.

Creating awareness of legal rights & responsibilities by disseminating information on

existing regulatory/contractual requirements through sample contract templates,

business guides and seminars.

Enhancing capacities for improved compliance of laws, rules and regulations through

training programs.

Legal opinions to your business queries, and

Interaction with regulatory authorities and service providers for removing legal

impediments.

Capacity Development

With the objective to increase the capacities of businesses for improved compliance of

different laws and regulations, we hold training courses and seminars on a need basis. If

your industry, association or chamber of commerce desires a training course on any legal or

regulatory matter you may contact us for the holding of the training course. Training &


http://www.smeda.org/index.php?option=com_content&view=article&catid=21&id=21

SMEDA

Services are also held regularly at different locations to enhance the understanding of

SME’s over a wide range of entrepreneurial subjects.

Legal Advisory

You can also contact us for seeking our opinion on a legal problem being faced by you and

the proposed course of action to be adopted for the solution of that problem.

You can get the desired legal opinion either by writing to us through courier, by fax, phone,

by visiting us personally at our contact points, or seek the legal opinion via email!

Network of Legal Services Providers

We can arrange a specialized Legal Service Provider for you who could represent you in

any court of law, tribunal or authority to tackle any issue that might arise during the course

of your business.

You can also approach the desired service provider directly by selecting one from the List

of Legal Service Providers available on our website.

Regulatory Reviews and Policy Inputs

We believe that a conducive business environment is of much importance for the growth of

SMEs. To ensure a conducive legal and regulatory environment for the SMEs, we keep on

reviewing Existing Legislation and legislative measures pertaining to SMEs. This is done

on self identification of impediments in the legislation or on the identification of any such

impediment by the stakeholders i.e. trade organizations/chambers of associations etc.

If you feel that a legislative measure impedes your entrepreneurial development, please feel

free to write to us at [email protected]

5. Technical Services


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SMEDA

Primary Services:

1. New SME start up technological process selection help.

2. Once process decided upon then help in selection of brand new/second machines to stay

inside a certain capital investment cost range.

3. Help in defining job descriptions of technical labour force.

4. Help in start up of the manufacturing / production process by selection of helpful

consultants.

5. Inspection of first production batches for achieving proposed quality standards of

manufactured product.

Secondary Services:

Upgradation of existing production lines.

Improvement in quality of Product to achieve customer requirement/standards.

Help in cutting down electricity and natural gas bills by retraining work force to think on

Conserving Utilities.

Sectoral Services:

Quality standards.

Materials Inspection

Selection of alternate grade materials in steel, brass, aluminum etc.

Materials Testing.

Gauging selection for production line inspection.

Ginning process upgradation

Fishing boat upgradation.

Improving 2 wheeler and 3 wheelers specs.


SMEDA

Improvement in testing and inspection of Surgical Instruments Knives and Cutlery,

Electrical Fans.

Materials selection for Agricultural Implements.

Advice on Heat Treatment/Forging/Casting based on material selected at hand.

Informational Services:

Advice on how to export engineered goods to African markets.


SMEDA

6. Training Services

SMEDA organizes training programs, seminars, workshops and conferences of short

duration in major cities across the country for raising awareness and capacity building of

SMEs. These need based training programs are affordable, appropriate and innovative.

These programs are aimed at improving knowledge, skills and competencies in the

technical, marketing, financial, compliance, policy, regulatory, legal, commercial and other

important functions. These programs help to improve major performance indicators such as

productivity, quality, competitiveness and sustainability etc. The results include

improvement in export potential, investment promotion, business transparency, human

resource development, managerial capacity building etc. These programs help decreasing

the level of SME mortality and increasing efficiency.

Functions Brief

Backstopping SMEDA Regional Offices in identifying focused priority training programs

for SMEs in priority areas

Backstopping SMEDA Regional Offices in developing, launching and feedback of priority

training programs for SMEs in priority areas

Establishing a network of Training Service Providers (TSPs) both individuals and

organizations, both in public and private sectors for SME training

Developing and launching SME focused priority training through TSPs

Review of Policy Work and Sectoral Plans in reference to Training

Creating awareness in educational institutions to develop liaison with SME sector to fulfill

their HR and R & D needs


SMEDA

Assessment of existing training service providers

Establishing key performance indicators and feedback systems for review & evaluation

Special Projects

Training Programmes organized by SMEDA Training Services are effective solutions to

improve major performance indicators; productivity, quality, competitiveness, sustainability

and knowledge management of SMEs for easier and faster path to ISO compliance and

WTO requirements. The results include improvements in export potential, regional

investment attractiveness, business transparency, human resource development, managerial

capacity and potential of SMEs. This has definitely helped decreasing the level of SME

mortality in the regions and increasing efficiency of introduction of innovations and new

technologies.

For further details, please write to us at the E-mail address [email protected]

7. Women Entrepreneurship Initiatives

The women economic development in Pakistan has been quite ignored and over the years

most of the programs/ interventions have been directed towards removing violence against

women, women’s primary education and health care, women crisis centers and most

recently a rigorous drive on political empowerment of women by giving them 20%

representation in the National Assembly of Pakistan. Despite governmental commitment

and donors efforts to reduce gender inequalities, nothing has been done with regards to


SMEDA

developing proper women economic action plan to uplift women socio-economic status. On

ad hoc basis, some common facility centers and vocational/technical training institutes to

enhance female participation rate have been established which provide traditional skills. On

the other hand, to mobilize youth energy into economic sectors, government has launched

internship programs and other incentives yet its impact on the grass root level is not visible

due to lack of information and knowledge to young females regarding these facilities. The

result is that many girls become confined to their homes.

Looking at the demand side, during 2000-2005, a large group of urban based educated

women proactively, knocked different government department doors for enterprise

development facilitation. But none of these organizations were able to cater their

specialized needs such as;

• Offices on affordable rents

• Display areas

• Specialised training programs to improve employability of females through

diversification in professional skills

• Direct guidance and support to young and creative potential female entrepreneurs

• Building strong network of Women Business

• Information on business documentation

Collectively as well as independently, these intermediary organizations have facilitated on

peace meal basis. However, there was a need for holistic program for enterprise and

leadership development of women in Pakistan to enhance their potential and facilitate in

their endeavours. Hence, SMEDA stepped in to support the development of this

marginalized segment of economic enterprise. SMEDA immediately, reached out to

businesswomen nationwide through its helpdesks at key business towns around Pakistan.

Our extensive interaction with Women Entrepreneurs (WEs) at various platforms clearly

indicates that lack of business management skills, information gaps and lack of networking

are major impediments in the development of women led businesses in Pakistan. It is in this

background, different intervention/ projects are being undertaken by SMEDA,


SMEDA

independently as well as with local/ international partners for complementing each others

efforts in reaching out for Women Entrepreneurs in Pakistan. The main activities include:

Women Business Development Center (WBDCs): As per the demand of WEs, the

WBDCs at Karachi, Quetta and Swat are in process of establishment which will be opening

within 2012. Owing to the success and growing demand of WBIC, a proposal for opening

new centers across Pakistan including AJK and GB on similar lines has been submitted to

government of Pakistan for approval of funding. The objective is so to give equal

opportunity to educated house-wives and young girls in other regions for setting up a

successful business in a flexible working arrangement that fits well with their role as

women. WBICs Clients are women from diverse backgrounds reflecting multi-faceted

nature of Women Businesses are its Clients. Especially WEs dealing in manufacturing,

trading or services sector (excluding clinical doctors, dentists, lawyers and NGOs) stand to

gain the most from this facility. Of course there are flexibility to accommodate novel

business ideas, mooted by Women Entrepreneurs (WEs).

Capacity Building Program for South Punjab: SMEDA’s WED Cell during 2011-12

designed a program for capacity building of WEs of South Punjab with consultation of

chambers members. The program included, training program titled “Enhancing Exhibition

Skills”, in which 50 WEs participated. Also provided sponsorship to 20 WEs at Islamabad

Expo 2012. Moreover, organized market exposure visit to 16 WEs at Lahore.

Pre-feasibility Studies: Over 180 pre-feasibility studies prepared to assist the start-up and

these studies are easily downloadable from SMEDA’s website (www.smeda.org.pk). WE

oriented studies are Day Care Center, High School, Montessori School, Internet Café,

Private Hospital, Medical Transcription, Boutique, Flower Shop, Wooden Furniture

Workshop, Beauty Clinic, and many more.

Opportunity in Exhibitions: SMEDA in collaboration with partner organizations have

sponsored over 120 Women Entrepreneurs in different local exhibitions and 5 ladies went to

SME Technology Fair, 2009 Mauritius.


SMEDA

Marketing Assistance: SMEDA provides advisory services to WEs to develop proper

marketing plans, export documentation, labeling, proper brochure & website development

along with registration of Trademarks, Industrial Designs and Copyrights.

Business Plan Development: SMEDA develops customized and demand driven business

plans for entrepreneurs.

Facilitation for Financing: SMEDA has signed MoU with First Women Bank Limited

(FWBL) to provide financial assistance on priority basis to WEs having adequate work

experience in their line of business. Moreover, SMEDA offers advisory services assistance

for securing finance/credit from various financial institutions. Side by side provide advice

on financial cycle management, inventory management, and efficient production

management.

Training programs for Entrepreneurship Development: Conducts training programs

across Pakistan covering management, technical and skill development training sessions, in

which more than 300 ladies have already participated.

Technical Assistance: provide information to WEs on latest technology innovations as well

as industry based machinery and tools requirements. Moreover, for energy efficiency

management, special team provide hands-on-support.

Industry Academia Linkages: SMEDA has build a close liaison with different universities

gender studies department for conducting need based activities such as “Entrepreneurship

Courses & Seminars”, Internship with WEs, exposure visits to Chambers & Industrial

clusters, and meeting with Women Role Models. Some of the institutions linked up with

SMEDA are Punjab University-Lahore, Fatima Jinnah Women University- Islamabad,

Peshawar University, and Karachi University.

Future Plans


SMEDA

The future strategy has been designed keeping in view the targets set forth in the “National

Economic Council Implementation Plan of Framework for Economic Growth 2015-16”. We

plan to undertake following activities for WEs across Pakistan:

1. Engagement of Youth: Strengthen our linkages with women colleges/universities to run

entrepreneurship development sessions, create internship opportunities and arrange visits to

industry.

1. Connectivity to markets and people: Create more opportunities for WEs to participate in

Local Exhibitions, and jointly organize Exposure Visits to different markets e.g., Faislabad,

Karachi, Peshawar, Rawalpindi, & Lahore.

1. Strengthen IPRs:Equip WEs with relevant information for branding, labeling and seeking

intellectual property protection for their creative work.

1. Expanding the network of Women Business Centers (upto 25):As per the demand of

WEs, the WBCs at Karachi, Quetta and Swat are in process of establishment which will be

opening within 2012. While, the success of WBC in other regions have raised the

expectations of WEs operating in other regions and we have received demand for setting up

new centers in Multan, Gujranwala, Islamabad, Abbotabad, D.I.Khan, Muzaffrabad-AJK &

Gilgit-GB on similar lines.

1. Conduct a need assessment of Women Entrepreneurs across Pakistan to design

comprehensive capacity building program.

1. Training programs on following topics:

· Power of Social Media (Gmail, Facebook & Tweeter)

· Effective planning for Product launch

· Export Markets & Marketing (non traditional products)

· Business Plan Development

· Legal Issues (Contract Mgmt, Taxation, Company Regt.)

· Export Import Documentation and Financing Schemes

· Small Business Management: Boutique & Textile Designing Business

The programs mentioned above were designed keeping in view the demand of the WEs in

that particular region.

SMEDA women clients categories

WEs running businesses Females keen for business Would be start ups


SMEDA

from home

Need office in attractive

commercial location but

want to avoid hassles of

maintaining an independent

office

But don’t want to venture on

an independent office

Straightaway. Need some

flexible Setting to test

prospects of their business

Still stuck with the Question

to do or not to do business.

Needing advice and concept

clearance

You may become part of SMEDA network by filling in the form. In case, you need business

advice, or jointly want to undertake capacity building program for your particular chamber

or association members, kindly contact us for further details


SMEDA

PROJECTS

• Public Sector Development Projects (PSDP)

• Cluster Development

• Development Partner Initiatives

• PM Youth Business Loan - Urdu

SMEDA stepped into the foray of Public Sector Development Program (PSDP) in 2006-07

by initially establishing four Common Facility Center projects, financed through PSDP

window. These projects are conceived in consultation with prominent cluster stakeholders

and aim to catalyze the adaptation of best business practices and induction of new

technologies through demonstration, training, provision of common facilities and ancillary

services. Currently SMEDA has a portfolio of twenty-eight projects with a total outlay of

Rs. 4.2 Billion.

Public Sector Development Projects

8. Agro Food Processing Facilities - Multan

9. CFTC for Light Engineering Cluster - Mardan

10. Chromite Beneficiation Plant - Khanozai

11. Dyeing , Washing & Pressing CFC for Silk Cluster - Mingora Swat

12. Establishment of Spinning CFC - Islampur Swat

13. Foundry Service Centre - Lahore

14. Glass Products Design & Manufacturing Center - Hyderabad

15. Gujranwala Business Center

16. Honey Processing & Packaging Common Facility Center - Mingora Swat


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SMEDA

17. Juice Producing and Packaging Line for Fresh Fruits & Vegetables - Multan

18. Khadi Crafts Development Company (KCDC) - Multan

19. Leather Crafts Development Company (LCDC) - Multan

20. Meat Processing & Training Company (MPTC ) - Multan

21. Policy & Project Implementation, Monitoring & Evaluation Unit (PPIMEU) Lahore

22. Red Chilies Processing Centre - Kunnri/ District Umerkot

23. Revival of Cutlery Institute of Pakistan (CIP) - Wazirabad

24. Revival of Hyderabad Leather Footwear Center - Hyderabad

25. Revival of Multani Blue Pottery - Multan

26. Sialkot Business and Commerce Centre

27. SME Subcontracting Exchange - Gujranwala

28. Sports Industries Development Centre - Sialkot

29. Spun Yarn Research and Development (R&D) Company - Multan

30. Washing & Pressing Unit - Matta Mughal Kheal, Charsada

31. Women Business Development Centre - Karachi

32. Women Business Development Centre - Mingora, Swat

33. Women Business Development Centre - Peshawar

34. Women Business Development Centre – Quetta


SMEDA

Cluster Development

Clusters are geographical concentration of enterprises which produce and sell a range of

related or complementary products and are, thus, faced with common challenges and

opportunities. Cluster development is basically supporting and strengthening the clusters by

creating networking among the stakeholders to reduce the cost of doing business, bringing

them on a single platform for more voice among policy makers, create new business

opportunities, reducing risk of doing business and capacity building of the enterprises.

Cluster development has also proved its contributing in employment generation and poverty

reduction worldwide.

Worldwide, one of the most widely used practices to support industrial clusters is provision

of Common Facility Centers (CFC). The establishment of CFCs is an integral part of

SMEDA’s Cluster Development activities. So far SMEDA has been able to establish

following CFCs with Chambers of commerce and industry and industry/trade

associations:SME Clusters in Pakistan have huge potential and critical to SME growth.

SMEDA has always been fully cognizant of the significance of Cluster Development and

has taken several initiatives. These initiatives includes Technological Up-gradation,

establishment of Common Facility Centers(CFCs) , access to Formal Finance for SME

clusters, Marketing support, Improving HR skills and Awareness on International

Certification & Regulations.

Computer Pattern Designing in Sialkot

This CFC has facilitated 300 SMEs to get their patterns developed, 122 participants

trained & 28 are under training and 95 employments generated.

Light Engineering Sector in Gujranwala

The center has provided testing services to 206 SMEs 130 students have completed

Auto Cad training.

Artificial Insemination Training Center in Burj Attari

More than 1100 technicians have been trained and 900 self employments generated

under this program.


SMEDA

Credit is life line for any running business including SMEs and realizing the potential in

SME sector and its importance, SMEDA has successfully launched following financing

schemes in Punjab:

Power Loom Up-gradation, Faisalabad (Rs.226 million to 150 entrepreneurs)

Support Services for Agri Credit (SSAC) (Rs.77.45 million to 252 farmers)

Lending Scheme for Cutlery Manufacturers, Wazirabad (Rs.5 million to 10 SMEs)

The proposals for following CFCs were prepared and submitted to Govt. of Punjab. The

Planning & Development Department-Punjab has approved these CFCs and allocated

Rs.100 million for the year 2005-2006. The construction of buildings ad procurement of

machinery and equipment are under process.

Auto Parts Design & Inspection Center, Lahore

Electrical Fittings Industry Support Center, Sargodha

Wooden Furniture Support Center, Chiniot

Composite Material Based, Sialkot

Besides above program SMEDA is also working in cluster profiling, marketing support to

cluster stakeholders and training to skills enhancement for SMEs as well as rural clusters.

SMEDA in collaboration with PSIC and UNIDO has started “Cluster Development

Program for SMEs in Punjab”. The objective of this program is to help in developing seven

different SME clusters of Punjab. The Diagnostic Study of these seven clusters has been

completed. In the next year action plan would be implemented. Besides these clusters,

SMEDA is also working exclusively with UNIDO in four clusters i.e. Sports Wear Sialkot,

Auto Part Lahore, PVC Pipes & Plastic Products Lahore and Marble & Granite

Rawalpindi/Islamabad.

CLUSTER PROFILES

1. Cotton Ginning Cluster - RAHIM YAR KHAN

2. Electrical Fittings Cluster – SARGODHA

3. Light Engineering – FAISALABAD

4. Potato Cluster Profile – OKARA

5. Wooden Furniture Cluster – GUJRAT


SMEDA

Prime Minister's Youth Business Loan -

IntroductionPrime Minister’s ‘Youth Business Loan’, for young entrepreneurs between the age group of

21 - 45 years, is designed to provide subsidised financing at 8.0% mark-up per annum for

one hundred thousand (100,000) beneficiaries, through designated financial institutions,

initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small business loan with tenure up to 8 years, with first year grace period, and a debt :

equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab,

Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and

Federally Administered Tribal Areas (FATA). It has a 50% quota for women and 5% quota

for families of Shaheeds, Widows and Disabled persons.

SMEDA has been tasked with an advisory role in the implementation of PM’s scheme by

providing more than fifty five updated pre-feasibilities for referencing by Loan beneficiaries

and participating banks to optimally utilize their financial resources. SMEDA shall continue

to add additional prefeasibilities. However, it is not necessary to develop a project on these

prefeasibilities. Any other projects will also be entertained by the banks.


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Small and Medium Enterprises Development Authority

Ordinance

ORDINANCE NO. XXXIX OF 2002

An

ORDINANCE

to provide for the, establishment of the Small and Medium Enterprises Development Authority as an autonomous body under the Federal Government for encouraging and facilitating the development and growth of small and medium enterprises in

Pakistan

Whereas it is expedient for the establishment of a Small and Medium Enterprises Development Authority to provide requisite support services for encouraging and facilitating the development and growth of small and medium enterprises in Pakistan by way of policy making and through the provisions of resources and support services and to provide for matters connected therewith and ancillary thereto ;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;

Now, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistanis pleased to make and promulgate the following Ordinance:-


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CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.-(1) This Ordinance may be called the Small and Medium Enterprises Development Authority Ordinance 2002.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.-In this Ordinance, unless there is anything repugnant in the subject or context,-

(a) "Authority" means the Small and Medium Enterprises Development Authority established under section 3 ;

(b) "Board" means the Board of the Authority constituted under section 5 ;

(c) "Chairman" means the Chairman of the board;

(d) "Chief Executive Officer" means the Chief Executive Officer of the Authority

(e) "Committee" means a committee constituted by the Board;

(f) "employee" means any officer or servant of the Authority ;

(g) "Executive Secretary" means the Executive Secretary of the Board:

(h) "Federal Government" for purposes of this Ordinance means the Ministry ofIndustries and Production;

(i) "Fund" means the fund established under section 22 ;

(j) "Member" means a member of the Board including the Chairman ;

(k) "Person" means any natural person or Legal entity, including an individual, association of persons, partnership, company, corporation, statutory body, trust, society, or any other legal entity ;

(l) "prescribed" means prescribed by the rules made under this Ordinance ;

(m) "private sector" means any field of activity not in the public sector or of any statutory body or any body which is owned or controlled, wholly or partially, by


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the Federal Government or a Provincial Government except a university or an educational or research institute ;

(n) "regulations" means the regulations made under this Ordinance ;

(o) "rules" means the rules made under this Ordinance ; and

(p) "S.M.E.s" means all entities declared or defined by the Federal Government to be small or medium enterprises for the purposes this Ordinance.

CHAPTER II THE AUTHORITY

3. Establishment of the Authority.- (1) There shall be established an Authority to be called the Small and Medium Enterprises Development Authority for carrying out the purposes and objectives of this Ordinance.

(2) The Authority shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this Ordinance, to acquire, take-over, hold and dispose of property, both moveable and immovable, to inter into contracts and shall by the said name sue and be sued.

(3) The Authority shall have the sole and exclusive right to have and se all emblems, motto, logo, decorations, descriptive or designating marks and title now or heretofore used by the Authority, the name "Small and Medium Enterprise Development Authority or any similar grammatical variation thereof and shall also have the sole and exclusive right to have and to use any emblems, motto, logo decorations, descriptive or designating marks or titles hereafter adopted by the Authority for carrying out its objectives.

(4) The Head Office of the Authority shall be at Lahore or at any other place as theFederal Government may, by notification in the official Gazette, specify.

(5) The Authority may establish regional offices at such other places and in such numbers as the Board may, from time to time, deem fit.

4. Powers and functions of the Authority.-(1) The Authority shall have all such powers as may be necessary to perform its duties and functions under this Ordinance.

(2) Without prejudice to the generality of the foregoing provision, the Authority shall exercise and perform the following powers and functions, namely:-

(a) to facilitate on policy-making and to provide overall planning, programming, research and evaluation of matters relating to S.M.E.s in Pakistan ;

(b) to identify research parameters and priorities and broad thrusts ;


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(c) to conduct professional overall monitoring and external evaluation of S.M.E.s;

(d) to advise the Federal Government for allocation of funds to identify research and planning priorities ;

(e) to initiate, take, continue, implement and perform any and all activities for encouraging and facilitating the growth and development of S.M.E.s' ;

(f) to protect the interests of S.M.E.s in accordance with the provisions of thisOrdinance and any rules and regulations made there under;

(g) to act as a resource base for providing expertise, information, data, statistics including but not limited to, economic, commercial, business and industrial areas and such other resources as deemed appropriate or necessary for S.M.E.s ;

(h) to provide, arrange and facilitate support services, including but not limited to technical, financial, managerial, legal, marketing, commercial industrial and such other services as deemed appropriate or necessary for S.M.E.s.

(i) to establish any association of persons, firm, company, body or corporation concerning S.M.E.s in Pakistan;

(j) to engage and enter into agreements with financial and other institutions, and financial, legal, accounting, valuation and other specialists, for the purposes of fulfilling the aims and objectives of the Authority;

(k) to borrow money and secure or discharge any debt or obligation binding on the Authority in such manner as may be thought fit;

CHAPTER IIIBOARD AND COMMITTEES

5. Exercise of the powers and functions of the Authority to be vested in a Board.-- The powers and functions of the Authority and the general and overall direction, management, control and superintendence of the affairs of the Authority shall vest in a Board and all actions, decisions, guidelines, directions, orders and policies made or issued by the Board in the exercise of the said powers and functions shall be deemed to have been made and issued by the Authority.


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6. Composition of the Board.-(1) The Board shall consist of the following members, namely:-

(a) the Chairman ;

(b) the Secretary, Industries and Production Division, Government of Pakistan ;

(c) the Secretary, Finance Division, Ministry of Finance, Revenue and EconomicAffairs, Government of Pakistan ;

(d) the Secretary, Commerce Division, Government of Pakistan ;

(e) the Chairman, Central Board of Revenue, Government of Pakistan;

(f) the Chief Executive Officer;

(g) six persons from the private sector and, as far as possible, amongst them at least one from each Province of Pakistan who are reputed for their integrity, competence, expertise, knowledge and experience in the spheres including but not limited to economics, commerce, business, trade, industry, law, actuarial sciences, accountancy, banking, finance, marketing, technology, academia, or other spheres of expertise and who are capable of and able to positively contribute towards the aims, objectives and functions of the Authority.

7. Powers and functions of the Board.-Subject to the provisions of this Ordinance, theBoard shall,-

(i) exercise executive control over the affairs of the Authority ;

(ii) manage and administer affairs of the Authority ;

(iii) approve the annual budget of the Authority ;

(iv) ask for any information or call for the record of any matter relating to S.M.E.s, pending before or decided by the Authority or any committee constituted by the Authority ;

(v) ask for any information or call for the record of any matter relating to S.M.E.s, from any ministry, division, department, section, statutory body, corporation, agency of the Federal of Provincial Government concerning any policy, relating to S.M.E.s subject to the constitutional and legal requirements, for review and appropriate action as and if necessary. The concerned ministry, division, department, section, statutory body, corporation, agency of the Federal or Provincial Government, which after the receipt of such request, shall, within a reasonable period of time, provide the requisite information or record to the Authority ;


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(vi) assist and facilitate banks and other institutions in developing appropriate programmes for the promotion and development of S.M.E.s ;

(vii) enter into all such negotiations, agreements and contracts and rescind or vary all such agreements or contracts, and to execute all such documents and do all acts, deeds and things, in the name and on behalf of the Authority as may, be considered necessary, expedient or proper or in relation to any of the matters aforesaid or otherwise, for the purposes of the Authority ;


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(viii) deal with, make arrangements, sign contracts with Government, semi- Government, autonomous bodies, corporations, local Government and other institutions ;

(ix) sell, deal in and dispose of all articles and goods of the Authority ;

(x) engage, employ, fix and pay the remuneration and remove, dismiss or discharge all employees and other persons employed in, or in connection with, the Authority's business;

(xi) transfer employees from one department to another department ;

(xii) employ advisers, experts and consultants for the Authority ;

(xiii) review the performance of any person employed or engaged by the Board or the Chief Executive Officer, from time to time, and issue such directions as it may deem fit, appropriate or necessary ;

(xiv) make and give receipt, release and discharge, all moneys payable to theAuthority or for the claims and demands of the Authority ;

(xv) receive money or goods on behalf of the Authority ;

(xvi) give effectual discharge for moneys payable to the Authority and for its claims and demands;

(xvii) draw, accept, endorse and negotiate all such cheques, bills of exchange, promissory notes and Government and other securities as shall be necessary in or for carrying on the affairs of the Authority whether the account may be overdrawn or not.

(xviii) provide for the welfare of employees or ex-employees of the Authority and the wives, widows or families or the dependants of such persons in such manner as it may think fit ;

(xix) open, maintain and operate accounts or letters of credit for any amount with any bank or banks and to give instructions for operation of such accounts ;

(xx) institute, commence, defend, compromise, withdraw or abandon any legal proceedings by or against the Authority or its employees or otherwise concerning the affairs of the Authority ;

(xxi) Appear before any Court of law, civil, criminal, revenue excise income-tax, special courts, tribunals, whether original or appellate, Provincial High Courts and the Supreme Court of Pakistan and other authorities for and on behalf of the


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Authority and to institute, apply for transfer of suits and other proceedings, conduct, prosecute and defend suits and legal jurisdiction, sign powers of attorney or other authorizations, statements, pleadings and petitions on behalf of the Authority and to represent, defend and safeguard the interest of Authority ;

(xxii) purchase or take on lease or otherwise acquire for the Authority, land, buildings, rights and privileges for the purpose of offices or premises of the Authority at such prices and generally on such terms as it may think necessary and expedient, to build, alter and furnish offices, houses or premises and let or sub-let any such houses or premises in, portion or otherwise ;

(xxiii) demand and enforce payment, delivery, transfer of any dues for recovery and receive from all and any persons, body corporate or corporations, firm or companies whatsoever, all moneys, securities for moneys, debts and claims of all kinds and demand; enforce, deliver and receive any property of all kinds whether belonging to the Authority as security or in trust or held by any person or company in trust or by way of security for the Authority ;

(xxiv) appoint and nominate attorneys, agents, managers for the Authority for such purposes and with such powers, authorities and discretion and for such period and subject to such conditions as he may, front time to time, think fit and authorise them to exercise any or all such powers and functions;

(xxv) assign or sub-contract work of the Authority to private sector persons or otherwise ;

(xxvi) see that the Ordinance and the rules and regulations made there under are duly observed and to ensure such observance ;

(xxvii) make, formulate, lay down, review and approve policies and plans relating to the aims and objectives of the Authority ;

(xxviii)advise the Authority on all matters relating to its policies, plans, aim and objectives ;

(xxix) review the development and growth of S.M.E.s in Pakistan and make recommendations and policies therefore;

(xxx) make, formulate, lay down and approve regulations on behalf of theAuthority ;

(xxxi) approve the annual financial budget of the Authority ;

(xxxii) seek advice from any person relating to any matter under its jurisdiction ;


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(xxxiii)constitute such committees as it may deem fit or consider necessary or expedient to assist the Board in the performance of its functions under this Ordinance and to review the performance of such committees

(xxxiv)maintain and preserve the Fund of the Authority ;

(xxxv) lay down the terms and conditions of the employees, experts, advisers and consultants of the Authority ;

(xxxvi)to assist and facilitate banks and other institutions in developing appropriate programmes for promotion and development of S.M.E.s ;

(xxxvii) recommend suitable persons for the appointment as the Chief ExecutiveOfficer; and

(xxxviii) do or to perform such other acts, deeds and things as may be necessary and incidental thereto.

8. Meetings of the Board.--(1) The Board shall meet not less than twice in a calendar year.

(2) the Meetings of the Board shall be presided over by the Chairman or, in his absence, by any other Member as the Board may determine;

(3) Six Members including at least two ex-officio Members shall constitute a quorum for a meeting of the Board.

(4) The decision of the Board shall be taken by the Majority of its Members, each of whom shall have a single vote, including the Chairman. In case of a tie, the Chairman or, in his absence, the person chairing the meeting shall have a casting vote.

(5) No actor proceeding of the Board shall be invalid merely on the ground f the existence of any vacancy in, or any other defect in the constitution of, the Board.

9. Committees.-The Board may, for the purpose of obtaining advice and assistance in carrying out the purposes of this Ordinance, constitute committee consisting of the Members of the Board and any other suitable person or persons as it may deem fit.

CHAPTER IV THE CHAIRMAN

10. The Chairman of the Board. The Federal Minister for Industries and Production, Government of Pakistan, shall be the ex-officio Chairman of the Board.


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11. Powers and functions of the Chairman: (1) The Chairman may ask for any information or call for the record of any matter, pending before or decided by the Board, the Chief Executive Officer or any committee, relating to S.M.E.s and may ask for information, from any Ministry, statutory body, corporation, agency of the Federal or Provincial Government concerning any policy, relating to S.M.E.s for review and appropriate action, as and if necessary. The concerned Ministry, statutory body, corporation, agency of the Federal or Provincial Government, which after the receipt of such request, shall, within a reasonable period of time, provide the requisite information or record to the Chairman.

(2) The Chairman may take appropriate and necessary action on any report submitted to him by the Board, the Chief Executive Officer, a Member or a committee.

(3) The Chairman may review the performance of the Board, the Chief Executive Officer, a Member or a committee, from time to time, and issue such directions as the Chairman may deem fit.

CHAPTER VTHE CHIEF EXECUTIVE OFFICER

12. The Chief Executive Officer.-(1) There shall be a Chief Executive Officer of the Authority who shall be appointed by the Federal Government subject to such terms and conditions as may be determined by the Federal Government.

(2) The Chief Executive Officer shall be appointed for a term of three years which may be extended to only one additional term of not exceeding three years.

13. Qualifications of the Chief Executive Officer.---A person shad not be qualified to be appointed as the Chief Executive Officer or a Member of the Authority unless he-

(a) is a citizen of Pakistan ;

(b) is not less than forty years of age ;

(c) is a person who is well-qualified, experienced and of known integrity and competence.

14. Disqualification of the Chief Executive Officer.-No person shall be appointed or continue as a Chief Executive Officer of the Authority if he-

(a) is of unsound mind and has been so declared by a competent authority;

(b) is adjudged an undischarged insolvent;

(c) ceases to be a citizen of Pakistan, or acquires the citizenship of a foreign state ;


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(d) has at any time been convicted of an offence which, in the opinion of theFederal Government, is an offence involving moral turpitude ;

(e) has been dismissed, removed or compulsorily retired from the service ofPakistan on the ground of misconduct ;

(f) is found guilty of a corrupt or illegal practice under any low for the time being in force;

(g) has after the establishment of Pakistan, worked against the integrity of the country ;

(h) is not capable of discharging his duties by reason of physical, psychological or mental unfitness or ill-health and has been so declared by a medical board appointed by the Board and comprising of three registered and licensed medical practitioners.;

(i) absents himself from all the Meetings of the Board, without sufficient cause and leave of absence from the Board, for a continuous period of six months or, if less than three meetings are held within such a period, from three consecutive meetings of the Board ;

(j) remains absent without leave from the Authority for more than seven days, or

(k) refuses or fails to discharge or, in the opinion of the Board, becomes incapable of effectively discharging his responsibilities under this Ordinance.

15. Powers and functions of the Chief Executive Officer.-The Chief Executive Officer shall exercise such powers and perform such functions as may be assigned to him by the Board.

CHAPTER VI DELEGATION OF POWERS

16. Delegation of powers, duties and functions.-The Board may, subject to such conditions and limitations as it may deem fit to impose, delegate all or any of its powers, duties or functions to the Chairman, the Chief Executive Officer, a Member, a committee or any officer of the Authority, as it may deem fit.

CHAPTER VIITHE EXECUTIVE SECRETARY


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17. The Executive Secretary.-(1) There shall be an Executive Secretary who shall be appointed by the Board on the basis of such qualification and on such terms and conditions as may be prescribed.

(2) The Executive Secretary shall exercise all such powers and perform all such functions, as may be assigned to him by the Board.

(3) The Executive Secretary shall be responsible for calling the meetings of the Board on the direction of the Chairman, the Chief Executive Officer or on a requisition by the majority of the Members, as the case may be.

CHAPTER VIII ESTABLISHMENT

18. Appointment of employees, etc.-(1) The authority may appoint such employees as it may consider necessary for the efficient performance of its functions on such terms and conditions as may be prescribed.

(2) All appointments and promotions in the Authority shall be in accordance with the service rules and regulations of the Authority.

(3) The Authority may engage experts, advisers and consultants on contract on such terms and conditions as it may determine.

19. Conditions of service and disciplinary powers.-The Authority shall prescribe the-procedure for the appointment and removal and other terms and conditions of service of its employees and shall be competent to take disciplinary action against its employees.

CHAPTER IX RESIGNATION AND REMOVAL

20. Resignation.-(1) The Chief Executive Officer or a Member, other than an ex officio Member, may, at any time, resign his office by writing under his hand addressed to the Chairman, subject to the terms and conditions of his office.

(2) An employee may, at anytime, resign his post by writing under his hand addressed to the Chief Executive Officer, subject to the terms and conditions of his employment.

21. Removal of Member:-The Federal Government may, on the recommendation of the Chairman, it any time, remove any Member, other than an ex officio Member, on any one or-more of the grounds specified in section 14.

CHAPTER X


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FINANCE, AUDIT AND ACCOUNTS

22. Fund.-(1) There shall be established a Fund vested in the Authority which shall be utilized by the Authority to meet all such costs and charges incurred in connection with its functions under this Ordinance.

(2) The Fund shall consist of-

(a) such funds as the Federal Government may, from time to time, grant to theAuthority;

(b) allocations made by the Federal Government from the Federal ConsolidatedFund or any other financial source available with the Federal Government;

(c) annual grant (budget) obtained from the Federal Government;

(d) non-repayable fees, and income, accruing to it under the law, donation. bequests, endowments, contributions, and other receipts provided to the Authority by any person, agency, body, corporate (statutory or otherwise), institution approved by the Board; and

(e) all other sums or property which may, in any manner, become payable to or be vested in the Authority.

23. Expenditure to be charged to the Fund.-The Fund shall be expended for the purposes of-

(a) paying any expenditure lawfully incurred by the Authority or its constituents for the purposes of this Ordinance; and

(b) repaying any financial accommodation received or moneys borrowed under this Ordinance and the profit, return, mark-up or interest due thereon, howsoever called.

24. Accounts, annual financial report and audit.-(1) The Authority shall maintain proper books of accounts and records on generally acceptable accounting principles, to explain all its transactions and to give true and fair view of its state of affairs. The books of accounts relating to a period of not less than ten ears immediately preceding the current year shall be preserved in good order.

(2) The Chief Executive Officer shall, in consultation with the Board, soon as may be practicable after the end of each financial year, cause an annual financial report to be prepared on the accounts and financial activities of the Authority during that financial year which shall include a balance sheet of the annual profits and losses and an account of the annual income and expenditure incurred by the Authority.


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(3) The accounts of the Authority shall be audited annually by a reputable firm of chartered accountants selected by the Board and, together with the report of the Auditors thereon, be submitted to the Board for approval by the 31st December each year.

(4) A copy of the annual financial report shall be sent to the Chairman and shall also be made available to the general public.

(5) The audit shall be carried out in accordance with the professional standards of auditing prescribed by the Pakistan Institute of Chartered Accountants, and shall issue a report on the audit.

25. Investment. The Authority may insofar as moneys are not required to be expended under this Ordinance, make such investments as it may determine from time to time.

26. Bank accounts.-The Authority shall open, maintain and operate one or more bank accounts in its name with any scheduled bank in Pakistan.

CHAPTER XI ANNUAL REPORT

27. Annual report.-(1) The Authority shall prepare, in such manner and form and at such time each year, as may be prescribed, an Annual Report which shall include, among others, a comprehensive review of its performance, the steps taken by the Authority towards the fulfillment of its aims and objectives and a true and full account of its operations and activities during the previous year.

(2) The Annual Report of the Authority shall be prepared under the direction of the ChiefExecutive Officer.

(3) The Annual Report shall be presented to the Board for its approval by the 31stDecember each year.

(4) After its approval by the Board, a copy of the Annual Report shall submitted to theFederal Government and it shall also be made available to the general public.

CHAPTER XIIGENERAL AND MISCELLANEOUS PROVISIONS

28. Limitation of liability.-The Authority shall not have any liability to any financial institution save in accordance with law.

29. Right of recovery as arrears of land revenue.-Subject to law, the Authority shall be entitled to recover all outstanding amounts due to it as if they are arrears of land revenue under the Land Revenue Act, 1967 (West Pakistan Act XVII of 1967).


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30. Power of the Federal Government to issue policy guidelines. The Federal Government may, as and when it considers it necessary, issue guideline to the Authority on matters of policy, not inconsistent with the provisions of this Ordinance or any rules made there under.

31. Chief Executive Officer, Members, employees, etc. of the Authority to be public servants.-The Chief Executive Officer, Members and employees of the Authority, when acting or purporting to act in pursuance of any of the provisions of this Ordinance shall be deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code, 1860 (Act XLV of 1860).

32. Indemnity.-No suit, prosecution or other legal proceedings shall lie against the Authority, the Chairman, the Chief Executive Officer, the Members or employees of the Authority, in respect of anything done intended or purported to be done orders passed or proceedings taken by the Authority, in good faith under this Ordinance or any of the rules or regulations made there under.

33. Winding up.-No provision of law relating to the winding up of bodies corporate shall apply to the Authority and the Authority shall not be wound up except by the orders of the Federal Government in such manner as the Federal Government may direct.

34. Common seal.-The Authority shall have a common seal and such seal shall be kept in the custody of the Chief Executive Officer or such other person as may be authorized by the Board. All documents that are required or permitted to be executed under seal shall be specified and authenticated in such manner as may be prescribed.

35. Ordinance to override other laws.-This Ordinance shall have effect notwithstanding anything contained in any other law for the time being in force.

36. Power to make rules.-(1) The Federal Government may, by notification in the official Gazette, make rules for carrying out the purposes and provisions of this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

(a) administration and conduct of business of the Authority;

(b) conduct of business at the meetings of the Board and the Committees;

(c) constitution of the Committees;

(d) finance, audit and accounts of the Authority;


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(e) employment and service matters of the Authority;

(f) control, restrictions and conditions subject to which the Authority may appoint employees;

(g) terms and conditions of service of the Chairman, Members and the ChiefExecutive Officer;

(h) terms and conditions of service of the employees of the Authority;

(i) powers, duties and functions of the Chairman and Chief Executive Officer;

(j) conditions under which the Board may enter into arrangements with other institutions and organizations, whether public, private, government owned or autonomous bodies;

(k) manner in which the accounts of the Authority shall be maintained;

(l) manner in which the Authority may invest its money;

(m) manner, form and time in which the annual statement of accounts and annual report shall be prepared;

(n) any other matter which is to be, or may be prescribed or in respect of which provision is to be, or may be made, by the rules.

37. Power to make regulations.-(1) The Board may, by notification in the official Gazette, make regulations, not inconsistent with the rules, to provide for all matters for which provision is necessary or expedient for carrying out the purposes and provisions of this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

(a) time and place of the meetings of the Board and the Committees and the procedure to be followed at such meetings;

(b) manner in which and the purpose for which persons may be co-opted by theAuthority;

(c) recruitment, selection and the terms and conditions of service of the employees;

(d) recruitment, selection and the terms and conditions of service of the ExecutiveSecretary;


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(e) duties, conduct and functions of the employees;

(f) conduct and discipline of the employees;

(g) constitution and management of provident or other funds for the employees;

(h) preparation of annual estimates of income and expenditure, profit and loss and supplementary estimates;

(i) annual report;

(j) manner in which payments are to be made by or on behalf of the Authority and the officers by whom orders for making deposits or investments for withdrawals or any other disposal of the income or fund of the Authority shall be authenticated, made or signed;

(k) custody and use of the common seal of the Authority;

(l) efficient conduct and expeditious disposal of the affairs of the Authority generally; and

(m) any other matter which is to be, or may be prescribed or in respect of which provision is to be, or may be made, by the regulations.

38. Removal of difficulties.-If any difficulty arises in giving effect to any provision of this Ordinance, the Federal Government may, by notification published in the Gazette, make such provisions, not inconsistent with the provisions of this Ordinance, as may appear to it to be appropriate or necessary for the purpose of removing such a difficulty.

39. Savings.-Upon the commencement of this Ordinance,-

(a) all funds, moneys, properties, rights and interests of whatever kind, issued, used, enjoyed, possessed owned or vested in the Small and Medium Enterprises Development Authority in existence immediately before such commencement and all liabilities legally subsisting against the said Small and Medium Enterprises Development Authority shall pass onto the Authority as established under this Ordinance;

(b) everything done, action taken, obligations and liabilities incurred, persons appointed or authorized and orders issued prior to such commencement shall be continued and be deemed to have been done, taken, incurred, appointed or authorized, instituted or issued by the Authority; and

(c) all acts, deeds and thing done, orders passed, decisions taken, directions issued in pursuance of the Federal Government's Notification No. 5(20) E&FI/98, dated


the 13th October,1998, shall be deemed to have been done, passed, taken or issued under this Ordinance.

40. Repeal.-The Federal Government's Notification No. 5(20) E&FI/98, dated the 13th

October, 1998, is hereby repealed.

GENERAL PERVEZ MUSHARRAF,

President.

MR. JUSTICE

MANSOOR AHMED, Secretary.

Documents

Small and Medium Enterprises Development Authority of Pakistan