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PAKISTAN

FATA Areas

Peshawar

Quetta

Sialkot

Gujranwala

Karachi

Hyderabad

Islamabad

PAKISTAN

AFGHANISTAN

IRAN

ARABIAN SEA

INDIA

CHINA

Lahore

COUNTRY REPORT (PAKISTAN)NATIONAL SME DEVELOPMENT AND

BUSINESS CLUSTER

Presented by:

Mir Mubashir Toqeer Ghulam Rasool Shaikh

Deputy General Manager Manager (Investment)

Heavy Mechanical Complex Ltd. Export Processing Zones Authority

Taxila, Pakistan Karachi- Pakistan

Contents

• Introduction

• General Information of the Country

• Historical Background “National SME Development and business Clusters”

• Current Issues and Trends

• Achievements

Introduction

The country report will give some brief information about the “Enhancement of SME Development in Pakistan”. There is general information about the country, background of National SME Development and Business Cluster”, Current issues & Trends and

achievement made by SME.

General Information of the Country

• Pakistan:

• is an Islamic republic.

• is Located in south Asia

• is Boarded by

- Afghanistan & Iran in the West

- Republic of India in the East

- Peoples Republic of China in the North West

General Information of the Country (continue)

• total area is 796,095 Sq. KM.• has 1,046 KM coastline along with Arabian sea &

Gulf of Oman.• population is 180 Million.• capital is Islamabad.• has 04 Provinces (Baluchistan, NWFP, Punjab &

Sind)• is 1st Atomic power Islamic country in the world.• is 2nd largest Islamic country after Indonesia

General Information of the Country (continue)

• is 4th largest cotton producer in the world.• is 6th most populated country in the world.• GDP is 5.8%• national language is Urdu.

- English & Urdu are both used in business and official environment.

• currency is Rupee. • has 2nd highest mountain of world K-2 in province NWFP.• major corps are Cotton, Wheat, Rice and Sugarcane• exports are cotton, textile goods, rice, leather items,

carpets sports goods, handy-crafts, fish and fish prep. and fruit

General Information of the Country (continue)

National Symbols of Pakistan

Emblem: Faith, Unity, Discipline Animal: Markhor Bird: Chukor Flower: Jasmine Tree: Cedrus deodar Juice: Sugar Cane Juice Sport: Field Hockey Dress: Shalwar Kameez

General Information of the Country (continue)

Markhor, Pakistan's national animal

General Information of the Country (continue)

K2 at 8,611 meters (28,251 ft)

is the second highest peak

in the world

GeographyPakistan covers 340,403 square miles (881,640 km2), approximately equaling the combined land areas of France and the United Kingdom. Its eastern regions are located on the Indian tectonic plate and the western and northern regions on the Iranian plateau and Eurasian land plate. Apart from the 1,046-km (650 mi) Arabian Sea coastline, Pakistan's land borders total 6,774 km-2,430 km (1,509 mi) with Afghanistan to the northwest, 523 km (325 mi) with China to the northeast, 2,912 kilometers (1,809 mi) with India to the east and 909 km(565 mi) with Iran to the southwest.

General Information of the Country (continue)

History of Pakistan

The Indus region, which covers much of Pakistan, was the site of several ancient cultures including the Neolithic era Mehrgarh and the Bronze era Indus Valley Civilisation (2500 BCE – 1500 BCE) at Harappa and Mohenjo-Daro

General Information of the Country (continue)

Takht Bhailisted as a UNESCO World Heritage Site is a Buddhist monastic complex dating back to 1st century BC.

History of Pakistan

The Priest King" Wearing Sindhi Ajruk, ca. 2500 BC.National Museum, Karachi, Pakistan

General Information of the Country (continue)

Faisal Mosque in Islamabad is the largest in the country.

Historical Background of “National SME Development and Business Clusters”

• Pakistan's economy used to be agricultural. This has now shifted to Service based.

• Today agriculture accounts for estimated 20% of GDP and service sector accounts for 53% of GDP.

• Foreign investment have been made in many areas e.g. Telecom, real-estate and energy.

• Other areas of Industries include textile, chemical manufacturing and Iron & steel industries.

• Pakistan is a rapidly developing country.• In 2008, its export amounted to $ 20.62 Billion (USD)

Historical Background of “National SME Development and Business Clusters”

(Continue)

• Due to financial, skilled labour and other constraints, SME has not been able to take advantage of increasingly available world market.

• Pakistan is 4th largest producer of cotton in the world.

• Sugarcane & Cereal are the principle crops of the country.

Current Issues and Trends

• Issues faced by the SME are - Access to capital- Better skills- Better product design- Technology

• Various other internal & external factors also acts as barrier to further development of SMEs.

• SMEs requiring various types of input at different stages of growth & development that could be industry and product specific.

Current Issues and Trends (continue)

• SMEs make up approximately 90% of all enterprises in Pakistan, employing 80% of the non-agricultural

labor force and have 40% share in annual GDP. • SMEs need better mechanism to get support for

business to function effectively such as technical up-gradation, marketing, finance as well as Human Resources & Training and development.

Current Issues and Trends (continue)

• SMEs has made many achievement during the past 5 years through its excellent performance.

• SMEs need to maintain balance public sector, style of working and private sector demands.

• Need to attract and maximize funding of all stake holders in the areas of skill and education.

• Need to create competitive environment for SMEs to compete larger organization with more political influence.

Achievements

• SMEDA has help the business of SMEs by providing and facilitating the business development services, securing finance, providing assistance to SMEs in development of programs and projects by identifying the service opportunities on the basis of supply and demand.

• Strengthening of SMEs by conducting and facilitating seminars, workshops and training programs.

Achievements (continue)

• SMEDA has many projects in progress to help SMEs to succeed in highly competitive business environment. These projects include, how to manage the business within financial constraints, arranging finance at low mark-up and recruiting and retaining skilled manpower it also set up and manage a service provider’s database including machinery and supplier for SMEs.

Thank you