The federal and Sindh governments have agreed to establish a joint coordination committee for the promotion of Small and Medium Enterprises (SMEs), a move aimed at stabilizing the national economy through mutual provincial development.
The decision was made during a high-level meeting between Sindh Chief Minister Syed Murad Ali Shah and the Prime Minister’s Special Assistant on Industries and Production, Haroon Akhtar, at the Chief Minister House on Monday.
According to the Chief Minister’s spokesperson, the committee, which will be notified within a week, will be responsible for launching new projects and recommending federal and provincial incentives for small businesses. It will comprise representatives from the Federal Ministry of Industries and Production, the Small and Medium Enterprises Development Authority (SMEDA), and Sindh’s investment and industries departments.
Both sides emphasized the importance of a unified approach. Chief Minister Shah stated, “It is essential for the federation and provinces to work together for the development of small industries.”
Haroon Akhtar echoed this sentiment, adding that the Prime Minister believes such collaboration is key to economic stability and special measures are being taken for the sector across the country. The federal special assistant also acknowledged the Sindh government’s “excellent initiatives” for small and medium businesses.
The two governments also agreed to collaborate on the revival of the red chili dehydration unit in Kunri and to provide duty and tax exemptions for SME solar projects to reduce energy costs.
Highlighting Sindh’s ongoing efforts, Chief Minister Shah noted that private investment of Rs 30.8 billion has been facilitated through the Sindh Enterprise Development Fund (SEDF), creating over 3,880 direct jobs.
He also announced a new program in collaboration with Habib Bank to provide unsecured loans of up to Rs 10 million to SMEs. Under this scheme, small traders will pay a fixed markup of 5%, while the remaining interest will be covered by the Sindh government through the SEDF.
The provincial government’s support extends to specific demographics, with the Chief Minister reporting that over 9,500 women have been provided with micro-loans and more than 48,000 youths are receiving free IT training through the Peoples Information Technology Program.
The talks also covered the potential revival of the State Bank’s refinance schemes for SMEs at a 6% interest rate. The Sindh Chief Minister urged SMEDA to update its data and expand the scope of its projects within the province.
Provincial Minister for Industries and Commerce, Jam Ikramullah Dharejo, confirmed that the Chief Minister has approved 300 acres of land for establishing small industrial units in Keamari. Additionally, Special Assistant for Investment Syed Qasim Naveed affirmed that the provincial investment department is prepared to provide comprehensive support to the sector.