Islamabad (GNP): Federal Minister for Commerce Jam Kamal Khan met with a delegation from the Gujranwala Small Chamber of Commerce to discuss challenges facing Pakistan’s small and medium enterprises, including export promotion, industrial competitiveness, access to financing, and regulatory reform.
Welcoming the delegation, Kamal described SMEs as a core component of Pakistan’s manufacturing sector, playing a critical role in employment and export growth, and reaffirmed that supporting this sector remains a government priority.
Exploring New Export Markets
The delegation noted that regional tensions and disruptions in the Red Sea have hurt exports to traditional Middle Eastern markets such as Saudi Arabia, the UAE, Bahrain, and Kuwait, and called for exploring alternative markets, particularly in Africa.
They requested government support in organizing business-to-business meetings and trade delegations to help Pakistani businesses build commercial ties in African markets.
Kamal acknowledged Africa’s growing economic potential, encouraging Pakistani businesses to explore emerging markets there, noting that the continent’s expanding population and demand for affordable products present opportunities for Pakistan’s engineering, metal, home appliance, and light manufacturing sectors.
Addressing Business Costs
The meeting also covered the high cost of doing business, with participants citing energy prices, taxation, limited access to affordable financing, and outdated machinery as key obstacles. Kamal said the government is working on reforms to improve industrial competitiveness and support technology upgrades through better financing access.
Referring to the Export-Import Bank of Pakistan, he noted that the government is working to expedite export financing and credit guarantee facilities, encouraging businesses to pursue EXIM-backed financing through commercial banks and assuring the delegation that the ministry would help resolve genuine issues exporters face in accessing these facilities.
Concerns Over Tax Refunds and Informal Economy
The delegation also raised concerns about delays in sales tax refunds, shortages of recycled raw materials, and challenges facing small manufacturers operating within the formal economy. Kamal agreed that refund processes need further improvement to ease liquidity pressures on exporters, stressing the importance of balanced policies supporting both export growth and domestic manufacturing.
On industrial development, he emphasized the importance of reverse engineering, automation, product standardization, and building strong vendor industries, noting that adopting international standards and promoting industrial clusters could improve productivity and strengthen Pakistan’s export competitiveness.
Regulatory Simplification Efforts
Kamal highlighted ongoing government efforts to simplify business regulations, noting that a high-level committee formed under the prime minister’s direction is reviewing overlapping licensing requirements across ministries with the goal of streamlining processes through digitalization.
The delegation also called for stronger action against the informal economy to create a level playing field for compliant manufacturers, a concern Kamal agreed with, emphasizing the need for policies that reward formal, compliant businesses and support sustainable industrial growth.
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Concluding the meeting, Kamal invited the Gujranwala Small Chamber of Commerce to submit detailed written recommendations based on the discussion, assuring the delegation that the Ministry of Commerce would carefully review each proposal and provide support where possible to strengthen Pakistan’s SME sector and expand its export base.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
