CCP holds seminar to discuss SMEs' crucial role in economy.

ISLAMABAD -- The Competition Commission of Pakistan (CCP) held a seminar in connection with International Women's Day to discuss the crucial role of Small and Medium Enterprises in the economy with a special focus on contributions and challenges of women entrepreneurs.

The theme of the seminar was, 'Women in SMEs: Challenges and way forward' and it was attended by a wide array of stakeholders including the representatives of small businesses, chambers of commerce and industry, commercial counsellors of foreign embassies in Pakistan, women-led SMEs, and regulators.

The Chairperson CCP Ms Rahat Kaunain Hassan along with the senior officers including female staff members were in attendance. In her opening address, Ms Rahat Kaunain Hassan highlighted the critical role of Small and Medium Enterprises (SMEs) in driving economic growth. While discussing the country's economic challenges, she emphasised the importance of enforcing competition principles in such times of crisis as a necessity. Ms Hassan also emphasised the need to promote women's economic empowerment that will change the economic landscape.

The CCP presented its draft report on 'Improving Economic Efficiency of SMEs.' The report identifies access to finance as a major barrier to SMEs. A survey of 50 financial institutions was conducted in 2021 which showed that only 30 out of the 50 lend to the SME sector. Among these 30 FIs, the lending is skewed towards medium enterprises and only two were able to achieve the indicative lending targets set by SBP in the sector. SBP prepared National Financial Inclusion Strategy (NFIS) in 2015 in which the SME sector was identified as a priority sector and the target set for SME lending was 17% of private sector financing, to achieve by 2020. However, the SME lending was only 5.40% of the private sector lending in September 2022 and over the last 5 years the lending has remained between 6-7%.

The report recommends that the targets need to be enhanced and aggressively followed. The report also emphasises the need for an SME Act, an effective SME banking network with focussed SME desks, as well as redefining SMEs to include micro-enterprises with distinct thresholds as per global standards. Addressing the session, 'Empowering Women Entrepreneurs in Pakistan: Challenges and the Way Forward,' founder and CEO at Base6 Private Limited, Dr Farah Faris Qureshi urged the government to simplify policies and...