The Small and Medium Scale Enterprises (SMEs) are playing very significant role in
almost all the economies around the world in irrespective of the countries
development stage. However it is obvious that SMEs function as a lifeline in
informal sector in Asia, Africa, Latin America and Eastern Europe due to their
contribution to overall economy in many aspects such as employment generation,
exports, tax income, innovation, competitiveness, equitable income distribution,
social stability, domestic resources usage, regional development and ultimately it is
the main source of economic growth. The Pakistan is no exception to this
phenomenon as a developing country located in South Asian region. Most of these
SMEs around the world are struggling to survive in today's globalized competitive
economy. They are hampered by the lack of technology, access to credits and
markets, lack of infrastructure and competition from foreign products, etc. In spite of
the various policy reforms, setting up of SMEs promotional apex bodies, incentives
and assistance offered by successive governments in Pakistan with the assistance of
private sector, NGOs and donor agencies since political independence, still this
SME sector is less dynamic and underdeveloped as against large-scale enterprises in
the national economy. The growth and expansion of SMEs are constrained by
problems relating to both product and factor markets in Pakistan. Lack of policy and
conducive supportive environment, sub sector strategies and cluster development
with business development services have further reduced the full potential
contribution of SMEs to the national economy. In this context this brief note is
covering basic facts about Pakistan SMEs and present an agenda for future SMEs
research in Pakistan.