Iftikhar Malik Stresses Need For SME Centres Of Excellence To Drive Economic Growth

LAHORE, (UrduPoint / Pakistan Point News - 14th Sep, 2025) SAARC Chamber of Commerce and Industry former President Iftikhar Ali Malik has emphasized the urgent need for establishing cluster centres of excellence for Small and Medium Enterprises (SMEs) on the pattern of the European Union and Japan.

He said these centres, focused on innovation, digital integration, and financing, are vital for sustainable growth as SMEs contribute nearly 40 percent to GDP in developing economies and up to 70 percent in developed countries.

In a statement issued on Sunday, he described SMEs as the backbone of Pakistan’s economy and the foundation of regional economic integration. He noted that Pakistani SMEs, particularly in textiles, surgical instruments, information technology, light engineering, agro-based products, and food processing, are globally recognised for quality and competence, but require further support to enhance competitiveness. “SMEs not only drive economic growth but also generate substantial employment opportunities and play a key role in poverty alleviation,” Malik remarked.

Highlighting the role of international cooperation, he expressed hope that the D-8 SME Cooperation Framework would accelerate SME internationalisation, global value chain integration, and market development. He pointed out that trade volume among D-8 countries, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey, reached $157.06 billion last year, a 10 percent increase from the previous year. Under the Decennial Roadmap and Preferential Trade Agreement (PTA), intra-D-8 trade is expected to rise to $500 billion within five years, creating up to 70 percent new jobs.

He urged the government to place SME development, promotion, and strengthening among its top priorities, making them engines of economic growth for sustainable development, enhanced competitiveness, and industrial progress. He concluded that with a collective market of over 1.3 billion people, D-8 nations hold the potential to raise trade volume to $2 trillion.