Promotion of Small and Medium Enterprises (SMEs) is prerequisite for sustaining economic growth, and both Pakistan and the Netherlands could join hands to further strengthen the SMEs in their respective countries.
Jos Van Hulten, Manager International Trade, Chamber of Commerce, Netherlands of Commerce, expressed these views, while speaking at the Lahore Chamber of Commerce and Industry (LCCI) here on Tuesday.
The LCCI President, Mian Shafqat Ali, also spoke on the occasion and gave an update to the distinguished guest on SME sector in Pakistan. Jos Van Hulten maintained that strong economic indicators have forced the Netherlands to divert its attention towards Pakistan.
Earlier in his presentation, Hulten threw light on salient features of the Netherlands. He said: "Efforts are being made to stimulate Dutch companies to make investment in the emerging economies like Pakistan." He said that it would also help create durable trade relations between the two countries besides curtailing the rate of unemployment. He also urged the Pakistani business community to start joint ventures with their counterparts in his country to get the maximum benefits. Speaking on the occasion, the LCCI President Mian Shafqat Ali said that SMEs contribute around 30 percent to Pakistan's GDP and 2.5 billion dollars to the manufacturing sector's export earnings. "Their share in the manufacturing value addition is estimated to be around 35 percent."
He said the growth of SMEs has remained underdeveloped due to a number of factors, which include: absence of an agreement on definition of SMEs: access to formal credit and related services: rigid and inflexible business and regulatory environment: outdated technology: lack of marketing, accounting and management skills: lack of guidance by the government departments.