Pakistan’s small and medium enterprises (SMEs) can forge strategic partnerships, modernize their operations, and tap into the vast potential of global trade. Realizing this vision necessitates a proactive collaboration among the policymakers and industry stakeholders to overcome the barriers and unlock Pakistan's full export potential within the CPEC framework.
Talking to WealthPK, Head of Policy Division - Trade and Industrial Cooperation at the Centre of Excellence for CPEC Liaquat Shah said SMEs were the lifeblood of Pakistan's economy, contributing substantially to employment generation, GDP growth, and poverty alleviation.
“One of the most pressing challenges facing Pakistan today is the scourge of unemployment. The second phase of CPEC presents a unique opportunity to address this issue head-on by creating job opportunities within the SEZs and fostering a conducive environment for entrepreneurship.”
The growth in Pakistan's exports, particularly to China and other global markets, has been relatively sluggish in recent years. At the core of Pakistan's export potential lie several key sectors where joint ventures with the Chinese partners can yield substantial benefits.
“The presence of Chinese expertise along with the prevailing opportunities in terms of supply chain management, agriculture, livestock, minerals, food processing, surgical instruments, construction, and ICT are some of the key businesses where joint ventures are highly supportive for the local SMEs in the backdrop of CPEC,” he said.
“However, despite their inherent potential, the SMEs growth has been constrained by various challenges, including limited access to finance, regulatory burdens, limited market access, skill shortage and technology adoption. Addressing these challenges requires concerted efforts.”
He suggested that the policymakers must prioritize targeted interventions to support the SMEs. These include facilitating access to finance through specialized loan schemes and venture capital funds tailored to the SMEs' needs. Streamlining regulatory processes and enhancing institutional support can also create an enabling environment for the SMEs to thrive.
Talking to WealthPK, Dr. Hassan Daud Butt, former CEO of KPBoIT and Project Director of the CPEC project at the Ministry of Planning and Development, said the establishment of SEZs along the CPEC route provided the SMEs with dedicated spaces equipped with necessary infrastructure and facilities. These zones offer a conducive environment for them to set up or expand their operations, thus helping foster innovation, enhance productivity, and create jobs. However, technical training is essential to enhance the employee skills, boost production, and capitalize on the opportunities stemming from the CPEC.
He added that it was imperative for both Pakistan and China to sustain the momentum generated by the CPEC and capitalize on its myriad opportunities. This entails continued collaboration, transparent governance, and a steadfast commitment to the principles of mutual respect, reciprocity, and win-win cooperation.
