SMEs in Pakistan a important driving force for economic growth: Says Chinese scholar

BEIJING, October 25 (INP): A Chinese scholar Prof. Cheng Xizhong said that development of small and Medium Enterprises (SME) in Pakistan is an important driving force for economic growth and achieving future targets.

In an article published by China Economic Net, Cheng Xizhong  who is visiting Professor at Southwest University of Political Science, noted that the Pakistani government is going to formulate SME’s policies to generate employment and enhance capacity of export-oriented enterprises of the country.

Sharing his views in this context, he said, ” the prosperity of market economy comes from fair competition. With the development of modern economy, on the one hand, there is a trend of centralization, and on the other hand, a large number of small and medium-sized enterprises are emerging.

These two forces, two trends and the dual structure in the market economy constitute the basic forces to promote the prosperity and growth of the national economy.

Second, due to the large number of small and medium-sized enterprises, which are distributed in various fields of the national economy, they are increasingly becoming an important factor of economic growth.

Third, small and medium-sized enterprises mainly exist and develop in labor-intensive industries, with less investment, flexible operation mode and low technical requirements for labor force. They are the main channel for the reemployment of the unemployed and the employment of new labor force, and play a stabilizing role in social development.

Fourth, small and medium-sized enterprises are not only an important source of technological innovation, but also have a higher efficiency of innovation because of their flexible operating mechanism, keen response to emerging markets and convenient technology renewal and product adjustment.

The time for transforming science and technology into real productivity is also greatly shortened. Therefore, they play an important role in creating new technologies and developing new products.

Fifth, people who run small and medium-sized enterprises often play multiple roles. They are not only the decision-makers and managers, but also the participants in product research, development and production. Therefore, small and medium-sized enterprises are the cradle of cultivating entrepreneurs.”

Prof. Cheng noted that in recent years, more and more Chinese small and medium-sized enterprises have invested in Pakistan and cooperated with Pakistani small and medium-sized enterprises, creating a large number of employment opportunities for Pakistan and making more and more contributions to Pakistan’s tax revenue.