Pakistan’s government has broadened its SME definition to include micro-enterprises and offers incentives to formalise millions of informal businesses.
Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, unveiled the Prime Minister’s SME Development Vision on Saturday. The vision aims to drive economic growth and global competitiveness.
During a media talk at the Small and Medium Enterprises Development Authority (Smeda) office, SAPM Haroon Akhtar Khan detailed the vision, emphasising SMES as vital to Pakistan’s economy. The new definition now encompasses micro-enterprises with annual turnovers below Rs30 million, granting them access to SME privileges. Khan highlighted that millions of unregistered household businesses operate informally, stunting their growth and national contributions. The government plans to introduce incentives to integrate these businesses into the formal economy, fostering development.
The initiative aligns with the Prime Minister’s directive to elevate Pakistani SMES to compete globally. By formalising micro-enterprises, the government seeks to enhance job creation, innovation, and economic stability, addressing the challenges of the informal sector that limit tax revenue and growth potential.
Pakistan’s expanded SME definition, including micro-enterprises, marks a bold step toward economic revitalisation. The government aims to unlock growth and global opportunities by offering incentives to formalise informal businesses. The Prime Minister’s SME Development Vision sets a promising path for Pakistan’s economic future.
