Sign in Subscribe
Chambers of commerce

Urgent Need for SME Cluster Centres of Excellence in South Asia

Strategic Insights

— 1 min read

The SAARC Chamber of Commerce and Industry former President, Iftikhar Ali Malik, has highlighted the importance of establishing cluster centres of excellence for Small and Medium Enterprises (SMEs) in the region. These centres, focused on innovation, digital integration, and financing, are crucial for sustainable growth as SMEs contribute significantly to GDP in developing economies. Malik emphasized that Pakistani SMEs, recognized globally for their quality and competence, require further support to enhance competitiveness. International cooperation, particularly through the D-8 SME Cooperation Framework, is expected to accelerate SME internationalisation and market development.

Key Takeaways:

  • SMEs contribute nearly 40 percent to GDP in developing economies and up to 70 percent in developed countries (developing economies: 40%, developed countries: 70%).
  • Pakistani SMEs are globally recognized for quality and competence, particularly in textiles, surgical instruments, information technology, light engineering, agro-based products, and food processing.
  • D-8 SME Cooperation Framework aims to accelerate SME internationalisation and global value chain integration.
  • Trade volume among D-8 countries reached $157.06 billion last year, a 10 percent increase from the previous year.
  • Intra-D-8 trade is expected to rise to $500 billion within five years under the Decennial Roadmap and Preferential Trade Agreement (PTA), creating up to 70 percent new jobs.
  • D-8 nations have a collective market of over 1.3 billion people, holding the potential to raise trade volume to $2 trillion.

Statistics:

  • SMEs contribute 40% to GDP in developing economies.
  • SMEs contribute 70% to GDP in developed countries.
  • Trade volume among D-8 countries reached $157.06 billion last year, a 10 percent increase from the previous year.
  • Intra-D-8 trade is expected to rise to $500 billion within five years under the Decennial Roadmap and Preferential Trade Agreement (PTA).
  • Up to 70 percent of new jobs are expected to be created through increased intra-D-8 trade.
  • D-8 nations have a collective market of over 1.3 billion people.

Sources:

  • The statement issued by Iftikhar Ali Malik.

Read more