Smeda still awaits funds for SME development projects

Lahore: Small and Medium Enterprises Development Authority (Smeda) is still awaiting the release of Rs 337 million, the amount, which has been allocated in the current fiscal budget for carrying out the development projects of SME sector, despite passing eight months of financial year 2008-09.

The Chief Executive Officer (CEO), Smeda, Shahid Rashid expressed his concerns in this regard during a meeting held with the members of the Lahore Economic Journalists Association (LEJA). Citing liquidity crunch and procedural changes in the accounting issues are the major reasons for this delay, Shahid Rashid apprised the members that these reasons have severely hampered the pace of progress.

He added that as the authority is ensuring the continuation of work on 16 projects worth of Rs 1.6 billion, which would be funded from the savings of funds of the last year. The projects included Women Business Incubation Centre at Lahore, which would extend hands-on support to women entrepreneurs and offer conducive environment with in-house business support services.

Other projects included Agro-Food Processing Facilities, Multan (PKR.135.19), Gujranwala Business Centre (PKR 98.78 million), Sports Industries Development Centre Sialkot, (PKR 272.61 million), Glass Products Design & Development Centre Hyderabad (PKR 37.08 million), Revival of Cutlery Institute Wazirabad (PKR 39.36 million), Foundry Service Centre Lahore (PKR 179.40 million), Product Development Centre for Composites Sialkot (PKR 382.22 million), Hyderabad, Leather Footwear Centre (PKR 35.01 million), Chromite Beneficiation Plant Muslim Bagh (PKR 8.38 million), Sialkot Business & Commerce Centre (PKR 341.67 million), SME Subcontracting Exchange in Lahore and Gujranwala (PKR 26.09 million) Women Business Development Centre (Peshawar & Karachi) worth of PKR 62.44 million, Washing & Pressing Plant in Matta Mughal Khel, Charsadda (PKR 5.38 million) and Policy & Project Implementation, Monitoring & Evaluation Unit, Lahore (PKR 25.82 million).

During the meeting CEO Smeda hoped that the projects, after completion would greatly help make potential clusters of SMEs competitive, both nationally and internationally.

Apart from a full range of business development services, Smeda has been operating an exclusive Industry Support Program in collaboration with Japan International Co-operation Agency (JICA) since 2003.

Giving the detail of the JICA he added that five Japanese Textile Experts were invited initially under this program to facilitate spinning, weaving, knitting and garments sub-sectors of the Textile Industry, they stayed for two and half years in Pakistan and during their stay they assisted 166 factories across the country as pilot projects.

Under the same programme, two more Japanese experts in the Auto sector greatly helped enhance the productivity level of the units and in this connection they provided 51 factories with technical assistance for two years.

He also apprised that the Program Renewable Energy & Energy Efficiency (REEE), conducted by Smeda in collaboration with National Productivity Organisation (NPO) & German Technical Co-operation (GTZ) bred very exceptional results and eight projects in the Textile sector concluded recently in Karachi, Lahore and Faisalabad confirmed 25-30% savings of energy at an average industrial unit. 'Smeda, through its Industry Support Programme has now introduced a comprehensive Energy Management System. The system is going to be implemented initially in Textile sector with the support of GTZ, Aptma and UET,' he added.

He further said that the Smeda has not been able to take measures to facilitate small and medium businesses to face recession due to lack of sufficient funds and mandate also, moreover, he added that there are other institutions, which are looking into the problem. However, he said, 'small and medium businesses could benefit from us on the issue of energy crisis, as they have prepared a number