Asian Development Bank stresses Pakistan to address challenges faced by small businesses

The Asian Development Bank (ADB) has advised Pakistan to mitigate the challenges faced by its private sector, particularly small and medium enterprises (SMEs).

“Policy challenge—strengthening smaller enterprises to spur private sector development stronger small and medium-sized enterprises (SMEs) could collectively become an important pillar of the economy in Pakistan, able to absorb the significant numbers of youth entering the labor market,” ADB stated in its flagship publication.

Pakistan ranks 3rd in the world in terms of govt support for SMEs, and fostering small and medium enterprises has comprised a cornerstone of its policies as of late.

Prime Minister Imran Khan also views small and medium enterprises (SMEs) as a fundamental component of the country’s economy. He has emphasized uplifting small and medium enterprises to create more employment opportunities and improve financial conditions.

The Asian Development Bank has also stated in the same report that Pakistan’s economy will rebound this year which might help alleviate some of the challenges SMEs are facing due to the COVID-19 pandemic. Presuming the success of the COVID-19 vaccine rollout and economic stabilization measures, growth is expected to accelerate to 4% by 2022.

Source: The News

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