PM orders setup of SMEDA, other vital institutions’ Boards

Saqib Mushtaq

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Friday chaired a meeting on matters related to the Small and Medium Enterprises Development Authority (SMEDA), emphasizing the crucial role of SMEs in Pakistan’s economy. He said the small and medium enterprises act as the back bone of the country’s economy.

Expressing dismay over the non-functioning of the SMEDA Board, the prime minister directed its immediate constitution, stressing that boards of all institutions vital for the country’s economy, should be established without delay. Additionally, the he called for promoting sub-contracting in industries and taking all possible measures to integrate Pakistani industries into the global supply chain.

The prime minister also ordered to take necessary steps to ensure appointment of the SMEDA’s Chief Executive Officer. Additionally, he also directed to include the people from the private sector in the steering committee.

During the briefing, the prime minister was informed that for the first time, SMEDA Development Fund had been launched for which an amount of Rs 30 billion had been allocated for 6 years. Out of the total, Rs 5 billion have already been provided for the year 2024-25, the meeting was told. It was informed in the meeting that, there were currently 5.2 million small and medium enterprises in Pakistan, which account for 40 percent of the country’s GDP whereas 31% of country’s exports depend on the SMEs.

Apart from non-agricultural employment, SME sector provides 72% of employment while some Rs 491 billion have been provided in the form of bank credit for the SME sector so far, but the bank credit for the SME sector needs to be taken up to Rs 800 billion, the meeting was told. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Industries and Production Rana Tanveer Hussain, PM’s Coordinator Rana Ihsaan Afzal, and other relevant high officials.

Meanwhile, the Prime Minister Mohammad Shehbaz Sharif, expressing profound sorrow and grief over recent devastating floods, offered assistance to Bangladesh to help cope with the situation.

In a letter to Chief Advisor of Bangladesh, Dr. Muhammad Yunus, Prime Minister Muhammad Shehbaz Sharif expressed Pakistan’s solidarity with Bangladesh during this challenging time, stating that the Pakistani nation stood with those who have lost loved ones, homes, and livelihoods in the floods, said a press release issued by the PM’s Office.

He lauded the people of Bangladesh for their renowned bravery and courage, particularly in the face of adversity. The prime minister expressed confidence that Bangladesh’s leadership will guide the country through this challenging period. He also affirmed Pakistan’s readiness to offer any assistance, needed by Bangladesh.

Shehbaz seeks proposals to shut down Utility Stores

F.P. Report

ISLAMABAD: Prime Minister Shehbaz Sharif has sought proposals for shutting down the state-owned Utility Stores Corporation (USC) and replace it with a new system. The prime minister also called for proposals within two weeks for an alternative system in place of the Utility Stores.

The government was mulling to give cash amounts to BISP consumers of the Utility Stores. In the meanwhile, the Utility Stores have stopped sale of subsidized items to the BISP consumers. The Utility Stores Corporation is a state-owned enterprise that was founded in 1971 and which operates chain stores throughout the country that provide basic commodities to the general public at prices which are lower than the open market because the government subsidizes them.

It approximately has nearly 15,000 employees and 5,939 store outlets across Pakistan. It may be mentioned here that the government had already decided to abolish five federal ministries. The ministries on the chopping block were Information Technology, Kashmir Affairs, Science and Technology, Industry and Production, and Health Services.

Later, after having second thoughts, the government had decided not to abolish the Ministry of National Health Services, Regulation and Coordination. Some departments under the ministry will be merged instead and the ministry will be right-sized. The ministry will coordinate with international organizations and provinces to improve healthcare services. The government is also considering transferring employees of merged departments to other departments.