ISLAMABAD, June 24: A new industrial policy is being finalized that will focus on the development of small and medium enterprises (SMEs) to serve as the engine of growth for which Rs12 billion are initially being earmarked.

Officials told Dawn here on Friday that a new SME strategy was also being finalized, which will be incorporated in the new industrial policy on the instructions of Industries and Production Minister Jehangir Tareen.

While the new policy, to be announced soon, will seek further incentives and concessions for establishing new industries both by local and foreign investors, it would also ensure the development of SMEs on the pattern of Japan, the United States, Korea and Germany to alleviate poverty and create new jobs in the country.

The officials said the policy would remove the decades old complaints of investors about infrastructure facilities for the setting up of new industries. The much talked about “one-window operation” for providing all infrastructure facilities under one roof, the officials said, would be ensured and would have a special mention in the new industrial policy.

Small and Medium Development Authority (Smeda) chief executive officer Shahab Khawaja when contacted confirmed that the development of SMEs would be one of the important components of the new policy.

He pointed out that an international workshop would be held from July 10 to 15 in which the draft of new SME policy would be placed for discussion, after which it would be sent to the federal cabinet for approval.

The State Bank governor, chairmen of the Central Board of Revenue and the Securities and Exchange Commission of Pakistan, presidents and senior officers of major banks, representatives of SME associations and presidents of all chambers of commerce and industry would participate in the workshop.

Mr Khawaja said the Asian Development Bank authorities, who had offered the SME sector development programme loan, and representatives of other international donor agencies would also take part in the workshop.

One of the major elements of the SME policy or strategy, he said, would be the implementation that unfortunately remained weak due to one reason or the other. He pointed out that Smeda was proposing an SME training institute, an SME chamber of commerce and industry and an SME sub-contracting exchange in the new policy.

He said that a number of new three-five years development projects would be launched in the SME sector with a view to removing poverty and creating new jobs throughout the country.

Responding to a question, he said the government expected additional financial and technical assistance from the international donors to develop SMEs on modern lines so that the issue of poverty could be addressed effectively.