Government Unveils Fresh Push To Empower Small Businesses

ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan has reaffirmed the government's commitment to reducing regulatory barriers, strengthening industrial growth, and expanding Pakistan's manufacturing sector to better support small and medium enterprises (SMEs).

The remarks were made during a meeting with a delegation from the Islamabad Chamber of Small Traders and Small Industries (ICSTSI), which discussed issues including SME development, taxation, industrial infrastructure, ease of doing business, and export promotion.

The delegation welcomed the State Bank of Pakistan's (SBP) revised definition of SMEs, describing it as a positive development that would enable a larger number of businesses to access financial assistance and incentives available to the formal sector.

Jam Kamal said the government is working to eliminate unnecessary regulations and modernise business procedures through digital transformation and institutional reforms. He stressed that outdated processes and overlapping rules should be phased out to make it easier for businesses to operate.

He added that efforts are also underway to simplify business registration through a more integrated system, allowing entrepreneurs to complete regulatory requirements before launching commercial activities. According to the minister, expanding the formal economy depends on making compliance easier rather than imposing additional burdens on businesses.

The delegation pointed out that many SMEs rely on self-financing and avoid formal registration because of complex procedures, repeated audits, and high compliance costs. Jam Kamal said broadening the tax base through voluntary documentation, instead of placing more pressure on existing taxpayers, remains a central government policy.

Participants also called for the establishment of dedicated small industrial zones in Islamabad with essential infrastructure, including electricity, gas, water, and road connectivity. They noted that many small manufacturers currently operate from residential areas and informal workshops due to the high cost of industrial units. The minister agreed that organised SME industrial estates would enhance productivity, improve product quality, and create more employment opportunities.

The meeting also discussed Pakistan's expanding food industry and the increasing role of e-commerce and digital delivery services. Jam Kamal said the food and hospitality sectors have become major sources of employment and offer significant growth potential.

The delegation urged the government to construct a modern slaughterhouse in Islamabad, noting that an eight-hectare site has already been identified and planning completed, although the project remains delayed due to administrative and environmental issues. They said the facility would improve hygiene standards, food safety, traceability, and the quality of halal meat exports.

Jam Kamal acknowledged the need to strengthen Pakistan's livestock value chain, saying better utilisation of animal by-products—including hides, bones, fats, and blood—could generate additional economic value while reducing environmental waste.

The Chamber also proposed a 100-acre industrial project under a public-private partnership involving the federal government, the Punjab government, and the private sector. The commerce minister welcomed the proposal and encouraged the business community to submit commercially viable, investment-ready projects.

He said public-private partnerships, technological innovation, and industrial diversification will play a vital role in strengthening Pakistan's manufacturing sector, increasing exports, and generating sustainable employment.

The minister reiterated that the Ministry of Commerce will continue working closely with the business community to identify practical solutions and build a stronger, more competitive, and export-oriented economy.