Small and Medium Enterprise Development Authority of Pakistan (SMEDA)

Premier institution of the Govt. of Pakistan under Ministry of Industries, Production & Special initiative, SMEDA was established in October 1998 to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan. With a futuristic approach and professional management structure it has focus on providing an enabling environment and business development services to small and medium enterprises. SMEDA is not only an SME policy-advisory body for the government of Pakistan but also facilitates other stakeholders in addressing their SME development agendas.

Based on an agreement reached in 2001 between the then UNIDO Representative in Pakistan and the then CEO SMEDA, the UNIDO project team had been hosted by SMEDA at the agency’s headquarters in Lahore for five years with all the infrastructural and office support.

SMEDA Punjab

SMEDA in collaboration with PSIC and UNIDO has started “Cluster Development Program for SMEs in Punjab”. The objective of this program is to help in developing seven different SME clusters of Punjab. The Diagnostic Study of these seven clusters has been completed. In the next year action plan would be implemented. Besides these clusters, SMEDA is also working exclusively with UNIDO in four clusters:

  • Sports Wear, Sialkot
  • Auto Parts, Lahore
  • PVC Pipes & Plastic Products, Lahore
  • Marble & Granite, Rawalpindi/Islamabad

Profiling of following clusters have been developed:

  • Cotton Ginning Cluster, Rahim Yar Khan
  • Electrical Fittings Cluster, Sargodha
  • Wooden Furniture Cluster, Gujrat
  • Ceramic Sanity Ware, Gujranwala
  • Light Engineering Cluster, Faisalabad  

Worldwide, one of the most widely used practices to support industrial clusters is provision of Common Facility Centers (CFC). The establishment of CFCs is an integral part of SMEDA’s Cluster Development activities. So far SMEDA has been able to establish following CFCs with Chambers of commerce and industry and industry/trade associations:

  • Computer Pattern Designing in Sialkot: This CFC has facilitated 300 SMEs to get their patterns developed, 122  participants trained & 28 are under training and 95 employments generated.
  • Light Engineering Sector in Gujranwala:  The center has provided testing services to 206 SMEs 130 students have  completed Auto Cad training.
  • Artificial Insemination Training Center in Burj Attari:  More than 1100 technicians have been trained and 900 self employments  generated under this program.

Credit is life line for any running business including SMEs and realizing the potential in SME sector and its importance, SMEDA has successfully launched following financing schemes in Punjab:

  • Power Loom Up-gradation, Faisalabad (Rs.226 million to 150 entrepreneurs)
  • Support Services for Agri Credit (SSAC) (Rs.77.45 million to 252 farmers)
  • Lending Scheme for Cutlery Manufacturers, Wazirabad (Rs.5 million to 10 SMEs)


After the successful running of CND programme in Punjab, the scope of the project expanded to SMEDA Sindh under which 7 CDA have been trained and 5 diagnostic studies have been developed as follows:

  • Knitwear Cluster, Karachi
  • Dairy Cluster, Sukker
  • Rice Cluster, Larkana
  • Horticulture Cluster, Nawabshah
  • Cut Flower Cluster, Hyderabad

UNIDO is extending technical support to SMEDA Sindh and first review meeting is scheduled to be in mid-May 2008. Interactions with SMEDA NWFP and SMEDA Balochistan are under way to have national outreach of the programme.  

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"A cluster is a sectoral and geographical concentration of small/medium enterprises facing common opportunities and threats."
Definition of a cluster