ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with a delegation of the Gujranwala Small Chamber of Commerce, where both sides discussed challenges confronting Pakistan’s small and medium enterprises (SMEs), export promotion, industrial competitiveness, access to finance, and regulatory reforms.
Commerce Minister calls for stronger SMEs support, export diversification, industrial reforms
Welcoming the delegation, the Minister said SMEs are the backbone of Pakistan’s manufacturing sector and play a critical role in employment generation, industrial development and export growth, said a release issued here Thursday.
He emphasized that strengthening SMEs remains a key priority of the Government.
The delegation highlighted the adverse impact of regional tensions and disruptions in the Red Sea on exports to traditional Middle Eastern markets, including Saudi Arabia, the UAE, Bahrain and Kuwait, and stressed the need to explore new destinations, particularly in Africa.
The delegation also requested government support for organizing business-to-business (B2B) meetings and trade delegations in African markets to help Pakistani businesses establish commercial linkages.
Jam Kamal Khan acknowledged Africa’s growing economic potential and encouraged Pakistani businesses to actively explore emerging markets. He noted that Africa’s expanding population and demand for competitively priced products present significant opportunities for Pakistan’s engineering, metal, home appliance and light manufacturing sectors.
The meeting also focused on the high cost of doing business, with participants identifying energy prices, taxation, access to affordable finance and outdated industrial machinery as major constraints. The Minister said the government is actively pursuing reforms to improve industrial competitiveness, promote technology upgradation and encourage modernization through better access to financing.
Referring to the Export-Import (EXIM) Bank of Pakistan, the Minister informed the delegation that the government is expediting export financing and credit guarantee facilities to facilitate exporters. He encouraged businesses to approach commercial banks for EXIM-backed financing and assured them that the Ministry would address genuine issues faced by exporters in accessing these facilities.
The delegation also raised concerns regarding delays in sales tax refunds, shortage of recycled raw materials, and challenges faced by small manufacturers operating in the formal sector. The Minister agreed that refund mechanisms should be further improved to ease liquidity pressures on exporters and emphasized the need for balanced policies that support both export growth and domestic manufacturing.
Discussing industrial development, Kamal Khan stressed the importance of reverse engineering, automation, product standardization and the development of strong vendor industries. He observed that adopting internationally recognized standards and promoting industrial clusters would improve productivity, strengthen supply chains and enhance Pakistan’s export competitiveness.
The Minister also highlighted the government’s ongoing efforts to simplify regulations and reduce the cost of doing business. He said a high-level committee constituted under the directions of the Prime Minister is reviewing overlapping licensing and regulatory requirements across various ministries and departments with the objective of streamlining procedures through digitalization and eliminating unnecessary approvals.
The delegation further emphasized the need to curb the informal economy, strengthen enforcement against undocumented businesses, and create a level playing field for compliant manufacturers.
The Minister agreed that formal industries should be encouraged through fair and transparent policies that reward compliance and support sustainable industrial growth.
Concluding the meeting, Khan invited the Gujranwala Small Chamber of Commerce to submit a comprehensive set of written recommendations based on the discussion. He assured the delegation that the Ministry of Commerce would examine each proposal carefully and extend all possible facilitation within its mandate to strengthen Pakistan’s SME sector and expand the country’s export base.
