This policy brief examines the regulatory and macroeconomic challenges faced by food SMEs in Pakistan, focusing on the constraints that hinder their growth. The national SME policy (2021) provides a framework, but gaps remain in policy execution, regulatory simplification, and access to incentives.
Key insights:
90% of businesses in Pakistan are SMEs, employing 80% of the non-agricultural workforce.
Food SMEs struggle with complex regulations, taxation, and inadequate infrastructure.
Poor coordination among stakeholders and restrictive public procurement policies limit SME participation in food markets.
Limited gender inclusion in SME policies, despite women making up only 12% of business owners.
Recommendations include streamlined taxation, dedicated SME legislation, special procurement measures, and gender-focused policies.
The report advocates for comprehensive reforms to foster a more competitive and inclusive environment for food-related SMEs.
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