President of Pak-China Joint Chamber of Commerce and Industry (PCJCCI) Shah Faisal Afridi has said that Pakistan could get magnificently benefit from its SME sector through the development of industrial clustering which refers to various industrial colonies composed of enterprises in identical and closely connected industries in specific areas.
He said that SME clustering, being centralisation of SMEs in their location is considered an important feature of SME development. He suggested that, Pakistan should follow the Chinese SME's growth model according to which in the first phase China identified its potential sectors, services and supplies such as plastic industry, lifestyle products, life sciences (medical supplies, pharmaceuticals, healthcare, biotechnology), automotive and aeroplane technologies, high value brand products and building products and services, all are the areas in which Chinese SME's excel.
Afridi further said that 97 percent of the contemporary enterprises belonged to SME sector in China that accounting for 60 percent of country's gross domestic product and generating 82 percent of the total employment opportunities there.
"China is involving its youth to take part in social enterprises and SMES's which is becoming an increasingly popular business model across China by identifying sustainable ways to give back to society, through empowering SME's and social enterprises," Afridi said.
These social entrepreneurs greatly help society through sustainable public services and other innovative ways, he added. He asserted that the Government of Pakistan should realise that the real potential of SME growth lies in the deprived people of this country who are quite keen to raise their standard of living.
He further explained that Chinese government is providing numerous incentives for encouraging SME's to expand its market.
Chinese are also promoting specialisation and coordination among SMEs so they can pursue collective development of materials supply, production, sale, and technological innovations in a bid toward market expansion, he mentioned.
Afridi said that Pakistan's whole economy is highly dependable on the pace and productivity of SMEs which can produce billion of dollars worth items.
He added that Pakistan is the second largest producer of buffalo milk, the third largest producer of cotton, fifth largest country for the occurrence of gemstones, fourth largest livestock population, which shows that Pakistan is enriched with a huge potential of economic growth and needs nothing but a progressive generation of SMEs to transform these resources into business.
He said that the SME sector is an engine of growth and innovation for the economy of the country, but absence of the easy access to finance has frustrated the development of this sector. He urged the government to lay down a viable strategy in collaboration with banking industry to enhance loaning for SMEs on easy terms and conditions.
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