ISLAMABAD, April 6: The Japanese International Cooperation Agency (JICA) will establish its cells in all the four provinces for the upgradation of textile sector for a period of two years.

A scheme to this effect was approved by the Smeda Board of Directors in its meeting chaired by Industries and Production Minister Liaquat Ali Jatoi here on Tuesday. All the members of the board, both from public and private sectors, were present in the meeting.

The meeting was informed that the JICA had agreed to send six volunteers to work with Smeda on a full time basis in the five years of expertise, viz spinning, weaving, knitting, dyeing and finishing and garments.

The JICA had proposed to Smeda to engage professionals of compatible expertise to work with JICA experts and acquire the necessary skills. After two years, Smeda would continue to provide technical support to the textile industry.

The board directed Smeda to prepare a detailed proposal regarding expenditures, hiring of professionals and other related matters for submission to its next meeting. Smeda, the minister stated, should work in fields and small cities to encourage the people to establish small industries.

The Smeda board also appointed a three-member audit committee and directed it to submit its report in the next meeting. Meanwhile, the SME Task Force, set up by the industries minister to lay down a national policy on SMEs, held its first meeting here on Tuesday under the chairmanship of Industries Secretary Javed Ashraf Hussain.

Smeda CEO Shahab Khawaja gave a presentation on issues and problems being faced by the SME sector. While the government has been making efforts to create a conducive environment for SMEs, the meeting was told, these had remained futile on implementation level due to non-friendly policies.

To resolve these issues, the SME Task Force has set up four working committees for undertaking detailed analysis of the core issues relating to the creation of a favourable business environment for SMEs, improvement in the delivery mechanisms, definition of micro, small, medium and large enterprises and financing.