Govt reaffirms SME support, eyes African market expansion

July 30, 2026 (MLN): The Government has reaffirmed that strengthening the small and medium enterprises (SMEs) sector remains a key priority, as a meeting addressed challenges around export promotion, industrial competitiveness, access to finance, and regulatory reforms.

The meeting was held between Federal Minister for Commerce Jam Kamal Khan and a delegation of the Gujranwala Small Chamber of Commerce, APP reported.

Welcoming the delegation, the minister termed SMEs the backbone of Pakistan's manufacturing sector, citing their critical role in employment generation, industrial development, and export growth.

The delegation flagged the adverse impact of regional tensions and Red Sea disruptions on exports to traditional Middle Eastern markets, including Saudi Arabia, the UAE, Bahrain, and Kuwait, and called for exploring new destinations, particularly in Africa.

They sought government support for organizing business-to-business (B2B) meetings and trade delegations to African markets to help Pakistani firms build commercial linkages.

Jam Kamal Khan acknowledged Africa's growing economic potential, noting that the continent's expanding population and demand for competitively priced goods offered significant opportunities for Pakistan's engineering, metal, home appliance, and light manufacturing sectors, and encouraged local businesses to actively pursue these emerging markets.

Participants identified energy prices, taxation, access to affordable finance, and outdated industrial machinery as major constraints driving up the cost of doing business.

The minister said the government was pursuing reforms to improve industrial competitiveness and promote technology upgradation through better financing access.

On the Export-Import (EXIM) Bank of Pakistan, he said export financing and credit guarantee facilities were being expedited, and urged exporters to approach commercial banks for EXIM-backed financing, assuring that genuine issues in accessing these facilities would be addressed.

The delegation also raised concerns over delays in sales tax refunds, shortages of recycled raw materials, and difficulties faced by small manufacturers in the formal sector.

The minister agreed refund mechanisms needed further improvement to ease liquidity pressure on exporters, while calling for balanced policies supporting both export growth and domestic manufacturing.

On industrial development, Kamal Khan underlined the importance of reverse engineering, automation, product standardization, and building strong vendor industries, saying that adopting internationally recognized standards and promoting industrial clusters would boost productivity, strengthen supply chains, and improve export competitiveness.

He also pointed to ongoing efforts to simplify regulations, noting that a high-level committee formed on the prime minister's directions was reviewing overlapping licensing and regulatory requirements across ministries to streamline procedures through digitalization and remove unnecessary approvals.

The delegation further stressed the need to curb the informal economy, strengthen enforcement against undocumented businesses, and ensure a level playing field for compliant manufacturers a point the minister agreed with, adding that formal industries should be encouraged through fair, transparent policies rewarding compliance and supporting sustainable industrial growth.

Concluding the meeting, the minister  invited the chamber to submit written recommendations, assuring that the Ministry of Commerce would examine each proposal and extend all possible facilitation to strengthen the SME sector and expand the country's export base.

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