Prime Minister (PM) Shehbaz Sharif has directed the authorities concerned to constitute a steering committee regarding Small and Medium Enterprises Authority (SMEs).

He was chairing a meeting regarding the Small and Medium Enterprises here in Islamabad on Friday. The Prime Minister also directed to constitute Board of the Authority, emphasizing that boards of all such institutions, which are significant for the country’s economy, should be formed immediately.

Expressing indignation over the non-functional board of Small and Medium Enterprise Development Authority (SMEDA), he said small and medium businesses are backbone of the country’s economy.

The Prime Minister said he himself will preside over SMEDA’s steering committee and people associated with private sector should also be included in the steering committee.

He instructed to immediately appoint SMEDA’s Chief Executive Officer.

Shehbaz Sharif also directed to promote sub-contracting in industries and underlined the need for taking steps to make these industries part of global supply chain.

The meeting was informed that a development fund of thirty billion rupees has been set up for SMEDA for six years.

It was further informed that there are currently 5.2 million small and medium enterprises in Pakistan, which contribute 40 percent of the country’s GDP while 31 percent of exports also depend on SMEs.

The meeting was also told that 491 billion rupees have been provided in the form of bank credit to the SME sector, but it needs to be raised to 800 billion rupees.