Analyzing the SMEs operation in Pakistan its effects on the economy and constraints it Faces

Abstract

Pakistan's economy is an economy of SME. Policies in the past have given a general perspective, direction and defining broad parameters of activity within the macroeconomic framework, but efforts have focused on the large enterprises, neglecting SME which are at the heart of our economy. Our SME suffer from a variety of weaknesses which have constrained their ability to adjust to the economic liberalization measures introduced and to take full advantage of rapidly expanding markets of the world. But SME importance and contribution in the economic activity suggests that there is a significant potential to enhance their growth through appropriate regulations and promotion. While SME are being mentioned in some of our socio-economic strategies and policy documents, measures are not sufficiently specified and prioritized for us to be able to speak of any coherent SME policy or approach.