Small and Medium Enterprises (SMEs) play a vital role in the economy of a country, they are most essential for developing countries like Pakistan. Their share in annual GDP is approximately 40%. They are labour intensive. If small industries like farming, embroidery work etc. is properly organised, these will not only reduce unemployment in the state but also provide a way for self-earning. These industries are also the main source of foreign exchange. The waste of large industries like that of cotton, wood, glass and steel, etc. can be profitably used by small industries.  

Small industries are quick yielding and the time for production is quite short. Another benefit of these industries is that the cost of the capital for these industries is very low. It develops the pool of workers containing skilled and semi-skilled ones for the future expansion of the industrial sector. In short, SMEs are the engine room for the development of a country’s economy because they provide the bulk of business activities in the growing economy of the state. The government of Pakistan should provide financial and technological resources to promote SMEs in Pakistan. 


Karachi, November 3.