Power Outages and Customs Red Tape Hamper SME Growth

Small and medium enterprises (SMEs) across Pakistan are confronting significant operational challenges, including severe electricity load shedding in Khyber-Pakhtunkhwa and customs hurdles impeding the inter-regional transport of goods, it was acknowledged in a high-level government meeting today.

The issues were raised during a review of SME clusters chaired by Haroon Akhtar Khan, the Special Assistant to the Prime Minister (SAPM) on Industries and Production. According to an official statement, the meeting”s objective was to assess progress, identify key difficulties, and outline a forward strategy for the sector.

The gathering included SMEDA Chief Executive Officer Nadia J Seth, Additional Secretary Industries and Production Asad Islam Mahni, along with SMEDA board members and representatives from various chambers of commerce and SME clusters.

During the session, cluster representatives highlighted that extensive power outages in Khyber-Pakhtunkhwa posed a major challenge to their operations. Separately, it was noted that olive oil producers face obstacles from customs authorities when moving their products between regions within the country.

In response, the SAPM called for an urgent resolution to the electricity crisis and gave assurances that the customs barriers would be resolved. He also directed that a comprehensive plan be developed with SMEDA and relevant businesses to modernise the salt mining sector on scientific lines.

Akhtar Khan conveyed that Prime Minister Shehbaz Sharif had instructed that all SME clusters be interconnected and provided with facilitation to ensure coordinated growth, with a vision to introduce SMEs and “Made in Pakistan” products to the global market.

Highlighting the potential for international trade, the SAPM stated that Pakistan”s honey and olive oil meet international standards and possess the capacity to be developed into global brands. He stressed the need to promote these products domestically and support their branding.

The meeting also reviewed the recent SME Expo, which Akhtar Khan described as an important milestone for providing exhibition, networking, and branding opportunities. He announced plans to continue holding such events, with more than two expos scheduled annually in different cities across Pakistan.

Concluding the review, the SAPM instructed the Small and Medium Enterprise Development Authority (SMEDA) to maintain continuous engagement with the clusters, coordinate with relevant departments to resolve issues, and submit a detailed report with actionable recommendations.