47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12been distributed to 142,756 employees of 50entities. The total dividend received from theTrusts of 11 entities stands at Rs. 6.79 billion(approx.) out of which 50 percent has beendistributed among employees of respective entitiesand the remaining 50 percent has been transferredto the Central Revolving Fund (CRF) of thePrivatization Commission (PC). Buyback claimsreceived till date stand at Rs. 4.45 billion, out ofwhich Rs. 1.160 billion has been paid.3.6: Small and Medium EnterprisesSME-led economic growth has become thehallmark of economic prosperity and general wellbeingin the world. SMEs are globally recognizedas critical for economic development and povertyalleviation. In Pakistan, nearly 99 percent ofeconomic establishments are SMEs; absorbing 80percent of unskilled labor. These SMEs arecollectively providing undeniable support toeconomic growth by contributing 40 percent toGDP and 30 percent to the exports from themanufacturing sector. To further boost itssignificance in the economic development processthe government has introduced various initiativesto promote SME-led economic growth with thedual aim to accelerate industrial development andexport diversification. Most important of theseinitiatives include approval of the first SME Policyof Pakistan and Infrastructural Developmentthrough Public Sector Development Program. Inaddition to these, SMEDA as a government agencyfor SME development has been involved in variousactivities such as providing over the counterservices to SMEs, helpdesk facilitation, humanresource development, technological up gradationand infrastructural support.Parallel to infrastructural support, SMEDA, incollaboration with international agencies like JapanInternational Cooperation Agency (JICA), DeutsheGesellshaft Fur Internationale Zusammenarbeit(GIZ), Senior Experts Services (SES, Germany),Asian Productivity Organization (APO) and localexperts, is providing technical assistance to SMEsin the relevant industrial units to upgrade theirskills and improve systems.During July-March 2011-12, 27 industrial unitshave been the direct beneficiaries of thisprogramme; whereas, 16 technical trainingworkshops, seminars and awareness sessions wereconducted. Major sectors facilitated under theIndustry Support Programme are: textiles(spinning, weaving processing, garments,sportswear and apparel), auto parts, electric fanssector and furniture sector across the country.The factors that impede development of the SMEsector in Pakistan are well-known. However, lackof support of concrete data and quantifiableresearch are making the task of securing attentionof policy makers and key government stakeholdersdifficult. During 2011-12, SMEDA took theinitiative of bridging this information gap throughpublication of the SMEDA Research WorkingPapers Series.3.7: Mineral SectorThe production of minerals are important for thegrowth of mineral based industries due to their usein the other sectors of the economy such as energyminerals-coal; agriculture minerals- rockphosphate, gypsum; construction mineralslimestone,natural stones, pozzolana etc. The mostsignificant benefits to be derived from anexpansion of the mineral sector activities are:expansion of employment opportunities; expandingbusiness opportunities for local industries; increaserevenue flow to the provincial and federalgovernments; technology transfer; and regionalinfrastructure development.Pakistan has a widely varied geologicalframework, ranging from Pre-Cambrian to thepresent that includes a number of zones hostingseveral metallic minerals, industrial minerals,precious and semi-precious stones.The government has extended special incentivesfor mineral development through public andprivate investment and facilitating private sector tocontribute in this sector. To revive industrialgrowth, a 100 MW power plant was established byusing Thar coal deposits based on undergroundcoal gasification, which would convert into 1000MW power plant. Efforts are for exploration andevaluation of coalfields in Sindh and Balochistan.These studies are aimed at enhancing the coalresource base, supplement power generation, and48