Role of SMEs in the economy of Pakistan: A Critical Analysis

Hafeez-ur-Rehman, Masood Sarwar, Imtiaz Ahmad

Abstract

SMEs are the most important sector of the economy. It plays a pivotal role in creating and expanding markets. Moreover, it provides employment and a source of scarce foreign exchange earnings in most of the economies. Researchers have tried to examine various issues related to this sector. However, a little research has been conducted to analyze the role of SMEs and its shortrun and longrun impact on the developing economies like Pakistan. This study highlights the role of SMEs in developing economies. The main sectors of SMEs in Pakistan are discussed. On the basis of critical  analysis it can be concluded that SMEs plays a pivotal role in the development process of Pakistan. Some important policy measures are also forwarded that help in overcoming the weaknesses in the various sectors of economy.