Pakistan to Strengthen SME Clusters to Boost Manufacturing, Employment and Exports

The government has reaffirmed its commitment to strengthening small and medium enterprises as a cornerstone of Pakistan’s industrial and economic growth, with Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan emphasizing that responsive policies and targeted facilitation can unlock growth, reduce the trade deficit, and generate much-needed employment opportunities.

Speaking during his visit to Bin Qasim Industrial Park in Karachi, Haroon Akhtar Khan said that SME-focused interventions are critical for expanding manufacturing capacity and improving export competitiveness. He noted that SMEs play a vital role in industrial supply chains and have the potential to absorb a significant portion of Pakistan’s growing workforce if supported through consistent and well-designed policies.

During the visit, the SAPM toured Techno Auto Glass Ltd, Pak Suzuki Motor Company Ltd, and Aisha Steel Mills. He expressed appreciation for the industrial infrastructure in the area, highlighting its contribution to the creation of skilled employment in the manufacturing sector. According to him, such industrial zones demonstrate how coordinated infrastructure development can support both large manufacturers and SME clusters operating alongside them.

Haroon Akhtar Khan pledged continued government support for the manufacturing sector, with particular emphasis on facilitating higher volumes of small and affordable cars for Pakistan’s middle and lower-middle income groups. He noted that a large segment of the population currently relies on motorcycles for transportation, and expanding access to small vehicles could stimulate demand across the automotive value chain while supporting local vendors and parts manufacturers.

The SAPM was briefed by industry representatives and Small and Medium Enterprises Development Authority Chief Executive Officer Nadia Jahangir Seth on the contribution of SME clusters to Pakistan’s manufacturing and export sectors. The briefings highlighted the role of clustered enterprises in strengthening local supply chains, improving product quality, and reducing dependence on imported components.

Around 75 companies operating in the automotive and automotive parts industry are based in Bin Qasim and surrounding areas. Collectively, these firms employ nearly 100,000 people and produce a wide range of locally manufactured parts used by the automotive sector. Industry representatives noted that the presence of concentrated SME clusters has improved efficiency and supported localisation across the industry.

Nadia Jahangir Seth outlined ongoing initiatives aimed at supporting SME clusters, including measures to improve access to finance, enhance technology adoption, and expand market linkages. She noted that targeted support helps SMEs overcome structural challenges, scale their operations, and integrate more effectively into domestic and export markets.

Industry stakeholders also pledged to further increase localisation efforts to reduce production costs and transfer skilled jobs to Pakistan. They emphasized that expanding local manufacturing capabilities would create greater opportunities for the country’s young population and contribute to long-term industrial sustainability.

The visit underscored the government’s broader strategy to position SMEs as a central pillar of Pakistan’s industrial development. By strengthening cluster-based growth, encouraging localisation, and improving access to finance and markets, policymakers aim to create a more resilient manufacturing ecosystem capable of driving inclusive economic growth.

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