Member states of the Organization of Islamic Cooperation (OIC), facing a significant trade imbalance where over 100 million small and medium-sized enterprises (SMEs) contribute to a hydrocarbon-based trade volume, have agreed on a historic accord aimed at diversifying and strengthening their collective economies.
At the inaugural meeting of the OIC’s Small and Medium Enterprises Network, participants unanimously endorsed the historic “Baku Declaration.” This accord signals a united commitment to accelerate efforts to promote trade, industrialization, and inclusive economic development among the bloc’s small businesses.
Socrates Aman Rana, the Chief Executive Officer of Pakistan’s Small and Medium Enterprises Development Authority (SMEDA), represented the country at the meeting. He emphasized that the declaration recognizes the crucial role of SMEs as a primary driver of economic expansion, job creation, innovation, and diversification.
Addressing the participants, Rana highlighted the vital role of these businesses in tackling global challenges such as digital transformation, climate change, and post-pandemic economic recovery. The event was organized in collaboration with the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC).
The 57 member states of the OIC have a population of over 2.1 billion. Despite this vast human and commercial potential, the current volume of intra-OIC trade is approximately US$925 billion, which is dominated by the energy sector.
Rana emphasized the need for the entire OIC region to shift towards high-value-added sectors and to enhance the SME value chain to achieve sustainable development. He expressed confidence that the newly established OIC-SME Network can act as a catalyst for this transformation.
He expressed hope that the network will emerge as a dynamic institutional platform, providing businesses in Islamic countries with ample opportunities to leverage each other’s capabilities. Its objective is to elevate intra-OIC trade, integrate regional and global supply chains, and promote the digital and green transformation agenda.
Highlighting Pakistan’s commitment, Rana mentioned SMEDA’s role as a key institution for facilitating SMEs. He affirmed that SMEDA will dedicate a specialized team to provide technical support for the OIC SME Network’s work plan, share its research and policy insights, and conduct consultative sessions to refine the network’s operational model.