SMEDA expands industrial stitching project
The Small and Medium Enterprises Development Authority (SMEDA) held a consultative session with stakeholders from the textile garments manufacturing sector to align the second phase of its Industrial Stitching Units project with the government's Uraan Pakistan programme, aimed at boosting exports through Small and Medium sized Enterprises (SMEs).
The session, presided over by SMEDA Chief Executive Officer Socrat Aman Rana, was attended by private sector representatives from the All Pakistan Textile Mills Association (APTMA), Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), and Pakistan Hosiery Manufacturers and Exporters Association (PHMA). Officials from the Ministry of Industries and Production and the Ministry of Planning, Development, and Special Initiatives also participated via video link.
The SMEDA CEO stated that the 1,000 Industrial Stitching Units project was approved by the government in 2018 to provide matching grants (60:40) for new business startups and existing SMEs to establish industrial stitching units. The first phase of the project, deemed a success, is set for completion by June 30, 2025. SMEDA is actively preparing PC-1 for Phase-II in alignment with Uraan Pakistan's objectives. He added that Phase-II will establish 350 units, compared to 150 units in Phase-I.
Under Phase-II, 100% grants will be allocated to export-oriented units, unlike Phase-I, which primarily focused on the domestic garment sector. The grant size for Phase-II has also been increased from Rs1.8 million to Rs5.0 million, supporting approximately 50 machines per unit, enabling businesses to handle export orders more efficiently.
Project Director Muhammad Raza, in a presentation, shared that under Phase-I, 150 units were facilitated nationwide, with 76 in Punjab, 35 in Sindh, 17 in Khyber-Pakhtunkhwa (K-P) and Balochistan, and one in Gilgit-Baltistan. He highlighted the impact assessment of 93 units, noting that Phase-I created 1,208 new jobs and promoted women's entrepreneurship, with 41% of the stitching units owned by women.
Private sector participants acknowledged the success of Phase-I, praising the transparency of the grant process and SMEDA's technical support. They also provided recommendations for Phase-II, which will now cater to multiple textile export sectors, including readymade garments, hosiery, knitwear, denim, leather garments, towels, and sports goods.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 days ago
- Business Recorder
Overseas Pakistanis help country post historic current account surplus of $1.9bn in 10MFY25
Pakistan has reported a current account surplus of $1.9 billion during the first ten months of the financial year 2024-25, marking a major turnaround from the $1.3 billion deficit recorded in the same period last year, according to the Pakistan Economic Survey 2024-25 unveiled on Monday. The improvement comes despite ongoing geopolitical disruptions in global trade and a widening trade deficit. The surplus was largely driven by a record-breaking $31.2 billion in remittances, reflecting a nearly 31% year-on-year increase in the said period. A monthly high of $4.1 billion in March 2025 helped ease external financing pressures and supported the build-up of foreign exchange reserves, which climbed to $16.60 billion as of May 30, including $11.51 billion held by the State Bank of Pakistan (SBP). Another strong contributor was the IT sector, which posted $3.1 billion in export earnings, including $400 million generated by freelancers—a testament to the growing digital services economy. Pakistan's current account posts $12mn surplus in April 2025 However, challenges persist. The goods trade deficit rose to $21.3 billion, as imports increased by 11.8%, outpacing the 6.8% growth in exports, which stood at $26.9 billion. Key export drivers included textiles and rice, while imports surged mainly in petroleum, machinery, and food. 'The government achieved a historic primary surplus of 3% of GDP for July-March FY25, up from 1.5% in the same period last year (FY24),' Finance Minister Muhammad Aurangzeb said in the Economic Review. The services account also widened, registering a $2.5 billion deficit, while the primary income account deficit climbed to $7.1 billion, primarily due to higher interest payments and dividend repatriation. On the financial side, foreign direct investment slipped 2.7% to $1.8 billion, indicating subdued investor sentiment. Net outflows of $1.6 billion were recorded as debt repayments intensified and liabilities shrank. Despite these concerns, the rupee remained stable, trading at Rs278.72 against the US dollar, buoyed by external account improvements. With global trade expected to grow 2.7% in 2025, Pakistan aims to sustain its recovery through structural reforms under the URAAN Pakistan framework, focusing on export diversification, IT growth, trade diplomacy, and infrastructure improvements. The current account surplus signals progress, but sustaining momentum will require targeted reforms to address underlying vulnerabilities in the external sector.
Business Recorder
2 days ago
- Business Recorder
Overseas Pakistanis help country post current account surplus of $1.9bn in 10MFY25
Pakistan has reported a current account surplus of $1.9 billion during the first ten months of the financial year 2024-25, marking a major turnaround from the $1.3 billion deficit recorded in the same period last year, according to the Pakistan Economic Survey 2024-25 unveiled on Monday. The improvement comes despite ongoing geopolitical disruptions in global trade and a widening trade deficit. The surplus was largely driven by a record-breaking $31.2 billion in remittances, reflecting a nearly 31% year-on-year increase in the said period. A monthly high of $4.1 billion in March 2025 helped ease external financing pressures and supported the build-up of foreign exchange reserves, which climbed to $16.60 billion as of May 30, including $11.51 billion held by the State Bank of Pakistan (SBP). Another strong contributor was the IT sector, which posted $3.1 billion in export earnings, including $400 million generated by freelancers—a testament to the growing digital services economy. Pakistan's current account posts $12mn surplus in April 2025 However, challenges persist. The goods trade deficit rose to $21.3 billion, as imports increased by 11.8%, outpacing the 6.8% growth in exports, which stood at $26.9 billion. Key export drivers included textiles and rice, while imports surged mainly in petroleum, machinery, and food. The services account also widened, registering a $2.5 billion deficit, while the primary income account deficit climbed to $7.1 billion, primarily due to higher interest payments and dividend repatriation. On the financial side, foreign direct investment slipped 2.7% to $1.8 billion, indicating subdued investor sentiment. Net outflows of $1.6 billion were recorded as debt repayments intensified and liabilities shrank. Despite these concerns, the rupee remained stable, trading at Rs278.72 against the US dollar, buoyed by external account improvements. With global trade expected to grow 2.7% in 2025, Pakistan aims to sustain its recovery through structural reforms under the URAAN Pakistan framework, focusing on export diversification, IT growth, trade diplomacy, and infrastructure improvements. The current account surplus signals progress, but sustaining momentum will require targeted reforms to address underlying vulnerabilities in the external sector.
Express Tribune
4 days ago
- Express Tribune
Govt releases detail of Rs17tr Uraan Pakistan
Prime Minister Shehbaz Sharif, Punjab Chief Minister Maryam Nawaz, Deputy Prime Minister and Foreign Minister Ishaq Dar and Planning Minister Ahsan Iqbal inaugurate the logo, website and a book on Uraan Pakistan. The event was also attended by Sindh, Balochistan and K-P governors and federal and provincial ministers. Photo: PPI The federal government has released details of a five-year development plan — the Uraan Pakistan — estimated at Rs17 trillion, whose objective, according to Federal Minister for Planning Ahsan Iqbal, is to make Pakistan economically self-sufficient. Under the plan, the federal share will be Rs7 trillion, while the provinces will contribute Rs10 trillion. Ahsan Iqbal said the target is to transform Pakistan into a $3 trillion economy by 2047. For this, the development budget for the upcoming fiscal year 2025-26 has been set at Rs4.2 trillion. Under the Public Sector Development Program (PSDP), the government has allocated Rs1 trillion in federal funding. The government has allocated Rs33 billion for the Diamer-Bhasha Dam; Rs35 billion for the Mohmand Dam; Rs100 billion for the Quetta-Karachi Highway; Rs25 billion for the Indus Highway; Rs15 billion for the Sukkur-Hyderabad Motorway and Rs10 billion for Karachi's K-IV water project. In the education sector, the government has earmarked Rs9 billion for Danish Schools and Rs4.3 billion for the Prime Minister's Skills Programme. It has allocated Rs1 billion for the treatment of Hepatitis C and Rs800 million for diabetes. The government has reduced the number of federal projects for the next five years from 1,071 to 800, eliminating low-priority and inactive projects. This reduction is expected to save the national exchequer Rs2.73 trillion. The federal development portfolio has now been limited to Rs12.8 trillion. The government has also established national centers for nanotechnology, quantum computing, and new industries, laying the foundation for the creation of a 'Quantum Valley' in Pakistan. According to the report, inflation dropped from 11.8% to 3.5% by May 2025 while the current account surplus reached $1.9 billion. Remittances also increased by 31%, reaching a total of $31.2 billion and the fiscal deficit decreased from 3.7% to 2.6% By eliminating unnecessary projects, the government saved Rs5.4 billion in April alone and 27 projects were approved or proposed in May 2025. The planning minister said 210 out of 240 PSDP projects have been thoroughly evaluated. Consultations regarding development partnerships were held with the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and the World Bank.
