Small and Medium Enterprises Development Authority of Pakistan

SMEDA
Hailey College of Banking & Finance Page 1

Small & Medium Enterprise
Development Authority

SMEDA


Introduction

Small and Medium Enterprises Development
Authority SMEDA

Premier institution of the Government of Pakistan under Ministry of Industries. SMEDA
was established in October 1998 to take on the challenge of developing Small & Medium
Enterprises (SMEs) in Pakistan. With a futuristic approach and professional management
structure it has focus on providing an enabling environment and business development
services to small and medium enterprises. SMEDA is not only an SME policy-advisory
body for the government of Pakistan but also facilitates other stakeholders in addressing
their SME development agendas.

SMEDA


SMEDA OBJECTIVES

1. Formulate Policy to encourage the growth of SMEs in the country and to advise the
Government on fiscal and monetary issues related to SMEs.

2. Facilitation of Business Development Services to SMEs.

3. Facilitate the development and strengthening of SME representative bodies
associations/chambers.

4. Set up and manage a service providers database including machinery and
supplier for SMEs.

5. Conducting sector studies and analysis for sector development strategies.

6. Facilitation of SMEs in securing financing.

7. Strengthening of SMEs by conducting and facilitating seminars, workshops and
training programs.

8. Donor assistances for SME development of SMEs through programs and projects.

9. Assist SMEs in getting international certifications (such as UL, CE, DIN, JIS,
ASME, KS, etc.) for their products and processes.

10. Identification of service opportunities on the basis of supply/demand gap.

SMEDA


Board of Directors

1. Minister of Industries & Production Chairman
2. Secretary, Ministry of Industries & Production Member (Ex-officio)
3. Secretary, Finance Division. Member (Ex-officio)
4. Secretary, Ministry of Commerce Member (Ex-officio)
5. Chairman, Federal board of Revenue Member (Ex-officio)
6. Chief Executive Officer, SMEDA Member
7. Engr. Adeel Rauf, CEO, Khyber Match Industry, KP. Member
8. Mr. Muhammad Salim, Ex-Chairman, PPAM, Lahore. Member
9.
Mr. Zulfiqar Thaver, President of Union for Small and
Medium Enterprises (UNISAME), Karachi.
Member
10. Mrs. Aamna Taseer, Director Zaiqa Channel, Lahore. Member
11. Dr. Abdul Nasir Kasi, CEO Agro Pak, Quetta. Member
12. Mr. M. Akram Malik, Ex-Federal Secretary. Member

SMEDA


Organogram

SMEDA


Services

Financial Services
Industry Support Program
Information Resource Centre - IRC
Legal and Contracting Services
Technical Services
Training Services
Women Entrepreneurship Initiatives

1. Financial Services

Financial Services (FS) functions with in the Business and Sector Development Services
(B&SDS) of SMEDA. As the name implies, FS is responsible for all direct and indirect
activities that fulfill the objective of providing SMEs with improved access to business
development services.
Financial Services not only implements its own initiatives to design and implement
programs but also plays a supportive and advisory role to other departments of SMEDA.

SMEDA

Banking Products & Services
Upon analyzing queries received at SMEDA helpdesk facility and our interaction with
sector stakeholders, it has been highlighted that SMEs require easy access to finance.
Therefore, creating awareness of SME specific products and services being offered by
banks among SMEs is considered an important measure by us to enhance SMEs access to
finance.
Financial Services adopts the following mode of reliable information dissemination:
Financial Services collects and compiles information on a periodic basis from various banks
about their products designed for SMEs. This information is then assimilated as per SME
understanding and displayed on SMEDA website in a user friendly format as a searchable
database and can be accessed throughBanking Products-Online Database

Trainings, Seminars & SME Financing Helpdesk.

To increase SME understanding on various finance related issues, we conduct awareness
seminars and trainings to disseminate information on SME financial services and products
available, ways to bridge the gap between SMEs and banks, accounting and bookkeeping
issues, etc. These seminars not only increase SMEDA outreach into the sector but also
highlight problems faced by SMEs while approaching banks; which are later addressed by
SMEDA and discussed on various forums.

SMEDA, in collaboration with banks periodically conducts Helpdesk for SME Financing
where bank representatives evaluate SME loan requests and SMEDA staff handholds
eligible SMEs through loan processing and documentation processes.

Supportive Role
1. Financial Analysis
Financial analysis is an important section of the comprehensive sector studies developed
internally by SMEDA. Financial Services is responsible for preparing this section; broad
parameters include:
Performance: Historical performance of the sector in terms of its financial viability
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Competitive Analysis: Various cost structures and value addition processes practiced
in the sector
Sourcing of Financing: Analyze financing modes available and best suited for the
sector
2. Financial Modeling
To ascertain financial feasibility of individual SME businesses as per request of clients
approaching SMEDA, Financial Services prepares extensive financial projections using
comprehensive models. These financial models are live models providing flexibility to
the user to evaluate viability of a proposed strategy under numerous scenarios.
3. External
Financial Services works very closely with Financial Institutions (FIs) in designing
financing schemes for SMEs. Moreover, the department designs programs and services, in
line with SMEDA objective, to support FIs by promoting their SME friendly facilities to
elevate the capacities of small and medium businesses.

Advisory Services
Carrying the core mandate of SME development, other institutions seek recommendations
and guidance from SMEDA prior to developing SME facilitating schemes. In this regard,
FS provides information related to financial conditions of the industry; prepares reports
backed by relevant historical statistical analysis and provides necessary relevant data as
needed.

2. Industry Support Program

SMEDA

The manufacturing industry in Pakistan is mostly labor intensive with a low level of
automation having high defect rates and low efficiency levels. As a result, it is facing
serious problems in increasing, or even sustaining its share in the global market, causing
unemployment in different major industrial sectors. The situation is worsening due to
current energy shortfall. The increasing input costs and decreasing profit margins are
causing threats to manufacturing; among others, the survival of Small and Medium
Enterprises (SMEs) is becoming difficult day by day.

The manufacturing sector of Pakistan has been recognized as a main engine of economic
growth. An increase in competitiveness of the industrial sector especially good performance
in export markets is therefore crucial for the national economy. Presently, the
manufacturing sector is in dire need of productivity improvement at mass level along with
efficient utilization of available energy resources in order to survive in the competitive
environment of local and international markets.

SMEDA has initiated an Industry Support Programme (ISP) since 2004 with the objective
to transfer technical expertise and knowledge to local industry through involvement of
International and Local Experts.

Industry Support Programme operates in collaboration with different international
organizations like Japan International Cooperation Agency (JICA), German International
Cooperation (GIZ), Training & Development Centers of the Bavarian Employers
Association (bfz- Germany), Asian Productivity Organization (APO- Japan), Senior
Experten Service (SES-Germany), United Nations Industrial Development Organization
(UNIDO) and World Bank for its various initiatives. Through international organization,
ISP is offering different services to member mills of its local partners like Pakistan Hosiery
Manufacturers Association (PHMA), Pakistan Readymade Garments Manufactures &
Exporters Association (PRGMEA), All Pakistan Textile Mills Association (APTMA), All
Pakistan Textile Processing Mills Association (APTPMA), Pakistan Association of
Automotive Parts and Accessories Manufacturers (PAAPAM) and Pakistan Foundry
Association (PFA) and others.

SMEDA

Through ISP, SMEDA has been providing technical guidance and consultancy to industrial
sectors in the areas of Productivity Improvement, Quality Assurance, Cost Reduction and
Energy Efficiency. This Programme has been facilitating different industrial sectors
including Textiles, Auto Parts, Foundry, Fan, Furniture, Jute, Leather Footwear, Food
Processing etc.
To ensure the success of Industry Support Programme, an Industry Support Cell (ISC) at
SMEDA was established in April 2004. The main objectives of establishing this cell are the
capacity building of SMEDA staff and to ensure the continuity of different initiatives.

ISC consists of professionals who work closely with foreign experts for the development
and upgradation of local industry.

3. Information Resource Centre - (IRC) Library

SMEDA Information Resource Centre (IRC) has been established to cater to the
information needs of SMEs and stakeholders from both the public and private sectors. IRC
maintains a collection of more than 3400 books and CD-ROMs/DVDs besides subscribing
leading newspapers and more than 20 journals of international repute on diverse business
sections and related fields. A number of full text online journals are also available for SMEs
and researchers on different fields of knowledge. IRC collection consists of
databases, directories, reports, yearbooks, annual reports, and loose-leaf material that are
available for easy retrieval through latest library management tools. Hard format of training
programs conducted by SMEDA are also available in IRC. SMEDA IRC collection is
increasing by an aggregate 10 % every year.
SMEDA

SMEDA-IRC serves as an information repository for entrepreneurs, research students,
academicians and other business stakeholders. IRC is information resource sharing partner
with a number of public & private organizations. It acquires information material from
partner organizations in case of non availability of specific resources.
SMEDA IRC offers:-
Library Catalogue
Conducive environment for reading and research
Free of cost reference services
Online Public Access Catalogue (available on intranet)
Proactive information dissemination services
Facility of photocopies, print outs on subsidized charges
Free web surfing
IRC services for SMEs:-
provision of list of importers, exporters and traders
provision of Pre-feasibilities Studies and Regulatory Procedures
provision of information regarding custom tariffs for imports & exports
know-how guides for new business start-ups
provision of articles from various journals and newspapers subscribed by SMEDA
IRC.
provision of the contact details of business establishments in selected field
provision of statistical data on various sectors of the economy
provision of up-to-date trade related statistics
availability of SMEDA publications
customized information to SMEs
IRC regularly subscribes:-
PC-TAS (SITC & HS)
CD-ROM database developed by International Trade Centre provides five years trade
statistics globally
CBI Market Surveys (in CD-ROM)
CBI stands for Centre for the Promotion of Imports from the developing countries
IRC regularly subscribes surveys, conducted by CBI, of European Union markets.
SMEDA

International Directory of Importers by Interdata, USA (both in hard & soft form)
This directory provides an up-to-date contact detail of importers globally.
Jamals Yellow Pages of Pakistan (both in hard & soft form)
Contains information regarding contact details of business, industry, embassies, banks
etc. in Pakistan

4. Legal and Contracting Services

We add value to the business of Small and Medium Entrepreneurs (SMEs) through
facilitation in:
Resolving legal problems through service providers.
Creating awareness of legal rights & responsibilities by disseminating information on
existing regulatory/contractual requirements through sample contract templates,
business guides and seminars.
Enhancing capacities for improved compliance of laws, rules and regulations through
training programs.
Legal opinions to your business queries, and
Interaction with regulatory authorities and service providers for removing legal
impediments.
Capacity Development
With the objective to increase the capacities of businesses for improved compliance of
different laws and regulations, we hold training courses and seminars on a need basis. If
your industry, association or chamber of commerce desires a training course on any legal or
regulatory matter you may contact us for the holding of the training course. Training &
SMEDA

Services are also held regularly at different locations to enhance the understanding of
SMEs over a wide range of entrepreneurial subjects.
Legal Advisory
You can also contact us for seeking our opinion on a legal problem being faced by you and
the proposed course of action to be adopted for the solution of that problem.

You can get the desired legal opinion either by writing to us through courier, by fax, phone,
by visiting us personally at our contact points, or seek the legal opinion via email!
Network of Legal Services Providers
We can arrange a specialized Legal Service Provider for you who could represent you in
any court of law, tribunal or authority to tackle any issue that might arise during the course
of your business.
You can also approach the desired service provider directly by selecting one from the List
of Legal Service Providers available on our website.

Regulatory Reviews and Policy Inputs
We believe that a conducive business environment is of much importance for the growth of
SMEs. To ensure a conducive legal and regulatory environment for the SMEs, we keep on
reviewing Existing Legislation and legislative measures pertaining to SMEs. This is done
on self identification of impediments in the legislation or on the identification of any such
impediment by the stakeholders i.e. trade organizations/chambers of associations etc.
If you feel that a legislative measure impedes your entrepreneurial development, please feel
free to write to us at legal@smeda.org.pk

5. Technical Services
SMEDA


Primary Services:
1. New SME start up technological process selection help.
2. Once process decided upon then help in selection of brand new/second machines to stay
inside a certain capital investment cost range.
3. Help in defining job descriptions of technical labour force.
4. Help in start up of the manufacturing / production process by selection of helpful
consultants.
5. Inspection of first production batches for achieving proposed quality standards of
manufactured product.

Secondary Services:
Upgradation of existing production lines.
Improvement in quality of Product to achieve customer requirement/standards.
Help in cutting down electricity and natural gas bills by retraining work force to think on
Conserving Utilities.
Sectoral Services:
Quality standards.
Materials Inspection
Selection of alternate grade materials in steel, brass, aluminum etc.
Materials Testing.
Gauging selection for production line inspection.
Ginning process upgradation
Fishing boat upgradation.
Improving 2 wheeler and 3 wheelers specs.
SMEDA

Improvement in testing and inspection of Surgical Instruments Knives and Cutlery,
Electrical Fans.
Materials selection for Agricultural Implements.
Advice on Heat Treatment/Forging/Casting based on material selected at hand.

Informational Services:
Advice on how to export engineered goods to African markets.

SMEDA

6. Training Services

SMEDA organizes training programs, seminars, workshops and conferences of short
duration in major cities across the country for raising awareness and capacity building of
SMEs. These need based training programs are affordable, appropriate and innovative.
These programs are aimed at improving knowledge, skills and competencies in the
technical, marketing, financial, compliance, policy, regulatory, legal, commercial and other
important functions. These programs help to improve major performance indicators such as
productivity, quality, competitiveness and sustainability etc. The results include
improvement in export potential, investment promotion, business transparency, human
resource development, managerial capacity building etc. These programs help decreasing
the level of SME mortality and increasing efficiency.

Functions Brief

Backstopping SMEDA Regional Offices in identifying focused priority training programs
for SMEs in priority areas
Backstopping SMEDA Regional Offices in developing, launching and feedback of priority
training programs for SMEs in priority areas
Establishing a network of Training Service Providers (TSPs) both individuals and
organizations, both in public and private sectors for SME training
Developing and launching SME focused priority training through TSPs
Review of Policy Work and Sectoral Plans in reference to Training
Creating awareness in educational institutions to develop liaison with SME sector to fulfill
their HR and R & D needs
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Assessment of existing training service providers
Establishing key performance indicators and feedback systems for review & evaluation
Special Projects
Training Programmes organized by SMEDA Training Services are effective solutions to
improve major performance indicators; productivity, quality, competitiveness, sustainability
and knowledge management of SMEs for easier and faster path to ISO compliance and
WTO requirements. The results include improvements in export potential, regional
investment attractiveness, business transparency, human resource development, managerial
capacity and potential of SMEs. This has definitely helped decreasing the level of SME
mortality in the regions and increasing efficiency of introduction of innovations and new
technologies.
For further details, please write to us at the E-mail address trng@smeda.org.pk

7. Women Entrepreneurship Initiatives

The women economic development in Pakistan has been quite ignored and over the years
most of the programs/ interventions have been directed towards removing violence against
women, womens primary education and health care, women crisis centers and most
recently a rigorous drive on political empowerment of women by giving them 20%
representation in the National Assembly of Pakistan. Despite governmental commitment
and donors efforts to reduce gender inequalities, nothing has been done with regards to
SMEDA

developing proper women economic action plan to uplift women socio-economic status. On
ad hoc basis, some common facility centers and vocational/technical training institutes to
enhance female participation rate have been established which provide traditional skills. On
the other hand, to mobilize youth energy into economic sectors, government has launched
internship programs and other incentives yet its impact on the grass root level is not visible
due to lack of information and knowledge to young females regarding these facilities. The
result is that many girls become confined to their homes.
Looking at the demand side, during 2000-2005, a large group of urban based educated
women proactively, knocked different government department doors for enterprise
development facilitation. But none of these organizations were able to cater their
specialized needs such as;

Offices on affordable rents
Display areas
Specialised training programs to improve employability of females through
diversification in professional skills
Direct guidance and support to young and creative potential female entrepreneurs
Building strong network of Women Business
Information on business documentation

Collectively as well as independently, these intermediary organizations have facilitated on
peace meal basis. However, there was a need for holistic program for enterprise and
leadership development of women in Pakistan to enhance their potential and facilitate in
their endeavours. Hence, SMEDA stepped in to support the development of this
marginalized segment of economic enterprise. SMEDA immediately, reached out to
businesswomen nationwide through its helpdesks at key business towns around Pakistan.

Our extensive interaction with Women Entrepreneurs (WEs) at various platforms clearly
indicates that lack of business management skills, information gaps and lack of networking
are major impediments in the development of women led businesses in Pakistan. It is in this
background, different intervention/ projects are being undertaken by SMEDA,
SMEDA

independently as well as with local/ international partners for complementing each others
efforts in reaching out for Women Entrepreneurs in Pakistan. The main activities include:
Women Business Development Center (WBDCs): As per the demand of WEs, the
WBDCs at Karachi, Quetta and Swat are in process of establishment which will be opening
within 2012. Owing to the success and growing demand of WBIC, a proposal for opening
new centers across Pakistan including AJK and GB on similar lines has been submitted to
government of Pakistan for approval of funding. The objective is so to give equal
opportunity to educated house-wives and young girls in other regions for setting up a
successful business in a flexible working arrangement that fits well with their role as
women. WBICs Clients are women from diverse backgrounds reflecting multi-faceted
nature of Women Businesses are its Clients. Especially WEs dealing in manufacturing,
trading or services sector (excluding clinical doctors, dentists, lawyers and NGOs) stand to
gain the most from this facility. Of course there are flexibility to accommodate novel
business ideas, mooted by Women Entrepreneurs (WEs).
Capacity Building Program for South Punjab: SMEDAs WED Cell during 2011-12
designed a program for capacity building of WEs of South Punjab with consultation of
chambers members. The program included, training program titled Enhancing Exhibition
Skills, in which 50 WEs participated. Also provided sponsorship to 20 WEs at Islamabad
Expo 2012. Moreover, organized market exposure visit to 16 WEs at Lahore.

Pre-feasibility Studies: Over 180 pre-feasibility studies prepared to assist the start-up and
these studies are easily downloadable from SMEDAs website (www.smeda.org.pk). WE
oriented studies are Day Care Center, High School, Montessori School, Internet Caf,
Private Hospital, Medical Transcription, Boutique, Flower Shop, Wooden Furniture
Workshop, Beauty Clinic, and many more.

Opportunity in Exhibitions: SMEDA in collaboration with partner organizations have
sponsored over 120 Women Entrepreneurs in different local exhibitions and 5 ladies went to
SME Technology Fair, 2009 Mauritius.

SMEDA

Marketing Assistance: SMEDA provides advisory services to WEs to develop proper
marketing plans, export documentation, labeling, proper brochure & website development
along with registration of Trademarks, Industrial Designs and Copyrights.

Business Plan Development: SMEDA develops customized and demand driven business
plans for entrepreneurs.

Facilitation for Financing: SMEDA has signed MoU with First Women Bank Limited
(FWBL) to provide financial assistance on priority basis to WEs having adequate work
experience in their line of business. Moreover, SMEDA offers advisory services assistance
for securing finance/credit from various financial institutions. Side by side provide advice
on financial cycle management, inventory management, and efficient production
management.

Training programs for Entrepreneurship Development: Conducts training programs
across Pakistan covering management, technical and skill development training sessions, in
which more than 300 ladies have already participated.

Technical Assistance: provide information to WEs on latest technology innovations as well
as industry based machinery and tools requirements. Moreover, for energy efficiency
management, special team provide hands-on-support.

Industry Academia Linkages: SMEDA has build a close liaison with different universities
gender studies department for conducting need based activities such as Entrepreneurship
Courses & Seminars, Internship with WEs, exposure visits to Chambers & Industrial
clusters, and meeting with Women Role Models. Some of the institutions linked up with
SMEDA are Punjab University-Lahore, Fatima Jinnah Women University- Islamabad,
Peshawar University, and Karachi University.

Future Plans
SMEDA

The future strategy has been designed keeping in view the targets set forth in the National
Economic Council Implementation Plan of Framework for Economic Growth 2015-16. We
plan to undertake following activities for WEs across Pakistan:
1. Engagement of Youth: Strengthen our linkages with women colleges/universities to run
entrepreneurship development sessions, create internship opportunities and arrange visits to
industry.
1. Connectivity to markets and people: Create more opportunities for WEs to participate in
Local Exhibitions, and jointly organize Exposure Visits to different markets e.g., Faislabad,
Karachi, Peshawar, Rawalpindi, & Lahore.
1. Strengthen IPRs:Equip WEs with relevant information for branding, labeling and seeking
intellectual property protection for their creative work.
1. Expanding the network of Women Business Centers (upto 25):As per the demand of
WEs, the WBCs at Karachi, Quetta and Swat are in process of establishment which will be
opening within 2012. While, the success of WBC in other regions have raised the
expectations of WEs operating in other regions and we have received demand for setting up
new centers in Multan, Gujranwala, Islamabad, Abbotabad, D.I.Khan, Muzaffrabad-AJK &
Gilgit-GB on similar lines.
1. Conduct a need assessment of Women Entrepreneurs across Pakistan to design
comprehensive capacity building program.
1. Training programs on following topics:
Power of Social Media (Gmail, Facebook & Tweeter)
Effective planning for Product launch
Export Markets & Marketing (non traditional products)
Business Plan Development
Legal Issues (Contract Mgmt, Taxation, Company Regt.)
Export Import Documentation and Financing Schemes
Small Business Management: Boutique & Textile Designing Business
The programs mentioned above were designed keeping in view the demand of the WEs in
that particular region.
SMEDA women clients categories
WEs running businesses Females keen for business Would be start ups
SMEDA

from home
Need office in attractive
commercial location but
want to avoid hassles of
maintaining an independent
office
But dont want to venture on
an independent office
Straightaway. Need some
flexible Setting to test
prospects of their business
Still stuck with the Question
to do or not to do business.
Needing advice and concept
clearance
You may become part of SMEDA network by filling in the form. In case, you need business
advice, or jointly want to undertake capacity building program for your particular chamber
or association members, kindly contact us for further details

SMEDA


PROJECTS

Public Sector Development Projects (PSDP)
Cluster Development
Development Partner Initiatives
PM Youth Business Loan - Urdu

SMEDA stepped into the foray of Public Sector Development Program (PSDP) in 2006-07
by initially establishing four Common Facility Center projects, financed through PSDP
window. These projects are conceived in consultation with prominent cluster stakeholders
and aim to catalyze the adaptation of best business practices and induction of new
technologies through demonstration, training, provision of common facilities and ancillary
services. Currently SMEDA has a portfolio of twenty-eight projects with a total outlay of
Rs. 4.2 Billion.

Public Sector Development Projects

8. Agro Food Processing Facilities - Multan
9. CFTC for Light Engineering Cluster - Mardan
10. Chromite Beneficiation Plant - Khanozai
11. Dyeing , Washing & Pressing CFC for Silk Cluster - Mingora Swat
12. Establishment of Spinning CFC - Islampur Swat
13. Foundry Service Centre - Lahore
14. Glass Products Design & Manufacturing Center - Hyderabad
15. Gujranwala Business Center
16. Honey Processing & Packaging Common Facility Center - Mingora Swat
SMEDA

17. Juice Producing and Packaging Line for Fresh Fruits & Vegetables - Multan
18. Khadi Crafts Development Company (KCDC) - Multan
19. Leather Crafts Development Company (LCDC) - Multan
20. Meat Processing & Training Company (MPTC ) - Multan
21. Policy & Project Implementation, Monitoring & Evaluation Unit (PPIMEU) Lahore
22. Red Chilies Processing Centre - Kunnri/ District Umerkot
23. Revival of Cutlery Institute of Pakistan (CIP) - Wazirabad
24. Revival of Hyderabad Leather Footwear Center - Hyderabad
25. Revival of Multani Blue Pottery - Multan
26. Sialkot Business and Commerce Centre
27. SME Subcontracting Exchange - Gujranwala
28. Sports Industries Development Centre - Sialkot
29. Spun Yarn Research and Development (R&D) Company - Multan
30. Washing & Pressing Unit - Matta Mughal Kheal, Charsada
31. Women Business Development Centre - Karachi
32. Women Business Development Centre - Mingora, Swat
33. Women Business Development Centre - Peshawar
34. Women Business Development Centre Quetta

SMEDA

Cluster Development

Clusters are geographical concentration of enterprises which produce and sell a range of
related or complementary products and are, thus, faced with common challenges and
opportunities. Cluster development is basically supporting and strengthening the clusters by
creating networking among the stakeholders to reduce the cost of doing business, bringing
them on a single platform for more voice among policy makers, create new business
opportunities, reducing risk of doing business and capacity building of the enterprises.
Cluster development has also proved its contributing in employment generation and poverty
reduction worldwide.
Worldwide, one of the most widely used practices to support industrial clusters is provision
of Common Facility Centers (CFC). The establishment of CFCs is an integral part of
SMEDAs Cluster Development activities. So far SMEDA has been able to establish
following CFCs with Chambers of commerce and industry and industry/trade
associations:SME Clusters in Pakistan have huge potential and critical to SME growth.
SMEDA has always been fully cognizant of the significance of Cluster Development and
has taken several initiatives. These initiatives includes Technological Up-gradation,
establishment of Common Facility Centers(CFCs) , access to Formal Finance for SME
clusters, Marketing support, Improving HR skills and Awareness on International
Certification & Regulations.
Computer Pattern Designing in Sialkot
This CFC has facilitated 300 SMEs to get their patterns developed, 122 participants
trained & 28 are under training and 95 employments generated.
Light Engineering Sector in Gujranwala
The center has provided testing services to 206 SMEs 130 students have completed
Auto Cad training.
Artificial Insemination Training Center in Burj Attari
More than 1100 technicians have been trained and 900 self employments generated
under this program.
SMEDA

Credit is life line for any running business including SMEs and realizing the potential in
SME sector and its importance, SMEDA has successfully launched following financing
schemes in Punjab:
Power Loom Up-gradation, Faisalabad (Rs.226 million to 150 entrepreneurs)
Support Services for Agri Credit (SSAC) (Rs.77.45 million to 252 farmers)
Lending Scheme for Cutlery Manufacturers, Wazirabad (Rs.5 million to 10 SMEs)
The proposals for following CFCs were prepared and submitted to Govt. of Punjab. The
Planning & Development Department-Punjab has approved these CFCs and allocated
Rs.100 million for the year 2005-2006. The construction of buildings ad procurement of
machinery and equipment are under process.
Auto Parts Design & Inspection Center, Lahore
Electrical Fittings Industry Support Center, Sargodha
Wooden Furniture Support Center, Chiniot
Composite Material Based, Sialkot
Besides above program SMEDA is also working in cluster profiling, marketing support to
cluster stakeholders and training to skills enhancement for SMEs as well as rural clusters.
SMEDA in collaboration with PSIC and UNIDO has started Cluster Development
Program for SMEs in Punjab. The objective of this program is to help in developing seven
different SME clusters of Punjab. The Diagnostic Study of these seven clusters has been
completed. In the next year action plan would be implemented. Besides these clusters,
SMEDA is also working exclusively with UNIDO in four clusters i.e. Sports Wear Sialkot,
Auto Part Lahore, PVC Pipes & Plastic Products Lahore and Marble & Granite
Rawalpindi/Islamabad.

CLUSTER PROFILES
1. Cotton Ginning Cluster - RAHIM YAR KHAN
2. Electrical Fittings Cluster SARGODHA
3. Light Engineering FAISALABAD
4. Potato Cluster Profile OKARA
5. Wooden Furniture Cluster GUJRAT

SMEDA

Prime Minister's Youth Business Loan -
Introduction
Prime Ministers Youth Business Loan, for young entrepreneurs between the age group of
21 - 45 years, is designed to provide subsidised financing at 8.0% mark-up per annum for
one hundred thousand (100,000) beneficiaries, through designated financial institutions,
initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small business loan with tenure up to 8 years, with first year grace period, and a debt :
equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab,
Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and
Federally Administered Tribal Areas (FATA). It has a 50% quota for women and 5% quota
for families of Shaheeds, Widows and Disabled persons.

SMEDA has been tasked with an advisory role in the implementation of PMs scheme by
providing more than fifty five updated pre-feasibilities for referencing by Loan beneficiaries
and participating banks to optimally utilize their financial resources. SMEDA shall continue
to add additional prefeasibilities. However, it is not necessary to develop a project on these
prefeasibilities. Any other projects will also be entertained by the banks.

SMEDA

Small and Medium Enterprises Development Authority
Ordinance

ORDINANCE NO. XXXIX OF 2002

An

ORDINANCE

to provide for the, establishment of the Small and Medium Enterprises Development
Authority as an autonomous body under the Federal Government for encouraging
and facilitating the development and growth of small and medium enterprises in
Pakistan

Whereas it is expedient for the establishment of a Small and Medium Enterprises
Development Authority to provide requisite support services for encouraging and
facilitating the development and growth of small and medium enterprises in Pakistan by
way of policy making and through the provisions of resources and support services and to
provide for matters connected therewith and ancillary thereto ;

AND WHEREAS the President is satisfied that circumstances exist which render it
necessary to take immediate action;

Now, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth
day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with
the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all
powers enabling him in that behalf, the President of the Islamic Republic of Pakistanis
pleased to make and promulgate the following Ordinance:-
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CHAPTER I
PRELIMINARY

1. Short title, extent and commencement.-(1) This Ordinance may be called the Small
and Medium Enterprises Development Authority Ordinance 2002.

(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.-In this Ordinance, unless there is anything repugnant in the subject or
context,-

(a) "Authority" means the Small and Medium Enterprises Development Authority
established under section 3 ;

(b) "Board" means the Board of the Authority constituted under section 5 ;
(c) "Chairman" means the Chairman of the board;
(d) "Chief Executive Officer" means the Chief Executive Officer of the Authority

(e) "Committee" means a committee constituted by the Board;
(f) "employee" means any officer or servant of the Authority ;
(g) "Executive Secretary" means the Executive Secretary of the Board:

(h) "Federal Government" for purposes of this Ordinance means the Ministry of
Industries and Production;

(i) "Fund" means the fund established under section 22 ;

(j) "Member" means a member of the Board including the Chairman ;

(k) "Person" means any natural person or Legal entity, including an individual,
association of persons, partnership, company, corporation, statutory body, trust,
society, or any other legal entity ;

(l) "prescribed" means prescribed by the rules made under this Ordinance ;

(m) "private sector" means any field of activity not in the public sector or of any
statutory body or any body which is owned or controlled, wholly or partially, by
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the Federal Government or a Provincial Government except a university or an
educational or research institute ;

(n) "regulations" means the regulations made under this Ordinance ;
(o) "rules" means the rules made under this Ordinance ; and
(p) "S.M.E.s" means all entities declared or defined by the Federal Government to
be small or medium enterprises for the purposes this Ordinance.

CHAPTER II THE
AUTHORITY

3. Establishment of the Authority.- (1) There shall be established an Authority to be
called the Small and Medium Enterprises Development Authority for carrying out the
purposes and objectives of this Ordinance.

(2) The Authority shall be a body corporate having perpetual succession and a common
seal, with power, subject to the provisions of this Ordinance, to acquire, take-over, hold
and dispose of property, both moveable and immovable, to inter into contracts and shall
by the said name sue and be sued.

(3) The Authority shall have the sole and exclusive right to have and se all emblems,
motto, logo, decorations, descriptive or designating marks and title now or heretofore
used by the Authority, the name "Small and Medium Enterprise Development Authority
or any similar grammatical variation thereof and shall also have the sole and exclusive
right to have and to use any emblems, motto, logo decorations, descriptive or designating
marks or titles hereafter adopted by the Authority for carrying out its objectives.

(4) The Head Office of the Authority shall be at Lahore or at any other place as the
Federal Government may, by notification in the official Gazette, specify.

(5) The Authority may establish regional offices at such other places and in such numbers
as the Board may, from time to time, deem fit.

4. Powers and functions of the Authority.-(1) The Authority shall have all such powers
as may be necessary to perform its duties and functions under this Ordinance.

(2) Without prejudice to the generality of the foregoing provision, the Authority shall
exercise and perform the following powers and functions, namely:-

(a) to facilitate on policy-making and to provide overall planning, programming,
research and evaluation of matters relating to S.M.E.s in Pakistan ;

(b) to identify research parameters and priorities and broad thrusts ;
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(c) to conduct professional overall monitoring and external evaluation of S.M.E.s;

(d) to advise the Federal Government for allocation of funds to identify research
and planning priorities ;

(e) to initiate, take, continue, implement and perform any and all activities for
encouraging and facilitating the growth and development of S.M.E.s' ;

(f) to protect the interests of S.M.E.s in accordance with the provisions of this
Ordinance and any rules and regulations made there under;

(g) to act as a resource base for providing expertise, information, data, statistics
including but not limited to, economic, commercial, business and industrial areas
and such other resources as deemed appropriate or necessary for S.M.E.s ;

(h) to provide, arrange and facilitate support services, including but not limited to
technical, financial, managerial, legal, marketing, commercial industrial and such
other services as deemed appropriate or necessary for S.M.E.s.

(i) to establish any association of persons, firm, company, body or corporation
concerning S.M.E.s in Pakistan;

(j) to engage and enter into agreements with financial and other institutions, and
financial, legal, accounting, valuation and other specialists, for the purposes of
fulfilling the aims and objectives of the Authority;

(k) to borrow money and secure or discharge any debt or obligation binding on
the Authority in such manner as may be thought fit;

CHAPTER III
BOARD AND COMMITTEES

5. Exercise of the powers and functions of the Authority to be vested in a Board.--
The powers and functions of the Authority and the general and overall direction,
management, control and superintendence of the affairs of the Authority shall vest in a
Board and all actions, decisions, guidelines, directions, orders and policies made or
issued by the Board in the exercise of the said powers and functions shall be deemed to
have been made and issued by the Authority.
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6. Composition of the Board.-(1) The Board shall consist of the following members,
namely:-

(a) the Chairman ;

(b) the Secretary, Industries and Production Division, Government of Pakistan ;

(c) the Secretary, Finance Division, Ministry of Finance, Revenue and Economic
Affairs, Government of Pakistan ;

(d) the Secretary, Commerce Division, Government of Pakistan ;

(e) the Chairman, Central Board of Revenue, Government of Pakistan;
(f) the Chief Executive Officer;
(g) six persons from the private sector and, as far as possible, amongst them at
least one from each Province of Pakistan who are reputed for their integrity,
competence, expertise, knowledge and experience in the spheres including but not
limited to economics, commerce, business, trade, industry, law, actuarial sciences,
accountancy, banking, finance, marketing, technology, academia, or other spheres
of expertise and who are capable of and able to positively contribute towards the
aims, objectives and functions of the Authority.

7. Powers and functions of the Board.-Subject to the provisions of this Ordinance, the
Board shall,-

(i) exercise executive control over the affairs of the Authority ;
(ii) manage and administer affairs of the Authority ;
(iii) approve the annual budget of the Authority ;

(iv) ask for any information or call for the record of any matter relating to
S.M.E.s, pending before or decided by the Authority or any committee constituted
by the Authority ;

(v) ask for any information or call for the record of any matter relating to S.M.E.s,
from any ministry, division, department, section, statutory body, corporation,
agency of the Federal of Provincial Government concerning any policy, relating
to S.M.E.s subject to the constitutional and legal requirements, for review and
appropriate action as and if necessary. The concerned ministry, division,
department, section, statutory body, corporation, agency of the Federal or
Provincial Government, which after the receipt of such request, shall, within a
reasonable period of time, provide the requisite information or record to the
Authority ;

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(vi) assist and facilitate banks and other institutions in developing appropriate
programmes for the promotion and development of S.M.E.s ;

(vii) enter into all such negotiations, agreements and contracts and rescind or vary
all such agreements or contracts, and to execute all such documents and do all
acts, deeds and things, in the name and on behalf of the Authority as may, be
considered necessary, expedient or proper or in relation to any of the matters
aforesaid or otherwise, for the purposes of the Authority ;
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(viii) deal with, make arrangements, sign contracts with Government, semi-
Government, autonomous bodies, corporations, local Government and other
institutions ;

(ix) sell, deal in and dispose of all articles and goods of the Authority ;

(x) engage, employ, fix and pay the remuneration and remove, dismiss or
discharge all employees and other persons employed in, or in connection with, the
Authority's business;

(xi) transfer employees from one department to another department ;
(xii) employ advisers, experts and consultants for the Authority ;
(xiii) review the performance of any person employed or engaged by the Board or
the Chief Executive Officer, from time to time, and issue such directions as it may
deem fit, appropriate or necessary ;

(xiv) make and give receipt, release and discharge, all moneys payable to the
Authority or for the claims and demands of the Authority ;
(xv) receive money or goods on behalf of the Authority ;
(xvi) give effectual discharge for moneys payable to the Authority and for its
claims and demands;

(xvii) draw, accept, endorse and negotiate all such cheques, bills of exchange,
promissory notes and Government and other securities as shall be necessary in or
for carrying on the affairs of the Authority whether the account may be overdrawn
or not.

(xviii) provide for the welfare of employees or ex-employees of the Authority and
the wives, widows or families or the dependants of such persons in such manner
as it may think fit ;

(xix) open, maintain and operate accounts or letters of credit for any amount with
any bank or banks and to give instructions for operation of such accounts ;

(xx) institute, commence, defend, compromise, withdraw or abandon any legal
proceedings by or against the Authority or its employees or otherwise concerning
the affairs of the Authority ;

(xxi) Appear before any Court of law, civil, criminal, revenue excise income-tax,
special courts, tribunals, whether original or appellate, Provincial High Courts and
the Supreme Court of Pakistan and other authorities for and on behalf of the
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Authority and to institute, apply for transfer of suits and other proceedings,
conduct, prosecute and defend suits and legal jurisdiction, sign powers of attorney
or other authorizations, statements, pleadings and petitions on behalf of the
Authority and to represent, defend and safeguard the interest of Authority ;

(xxii) purchase or take on lease or otherwise acquire for the Authority, land,
buildings, rights and privileges for the purpose of offices or premises of the
Authority at such prices and generally on such terms as it may think necessary
and expedient, to build, alter and furnish offices, houses or premises and let or
sub-let any such houses or premises in, portion or otherwise ;

(xxiii) demand and enforce payment, delivery, transfer of any dues for recovery
and receive from all and any persons, body corporate or corporations, firm or
companies whatsoever, all moneys, securities for moneys, debts and claims of all
kinds and demand; enforce, deliver and receive any property of all kinds whether
belonging to the Authority as security or in trust or held by any person or
company in trust or by way of security for the Authority ;

(xxiv) appoint and nominate attorneys, agents, managers for the Authority for
such purposes and with such powers, authorities and discretion and for such
period and subject to such conditions as he may, front time to time, think fit and
authorise them to exercise any or all such powers and functions;

(xxv) assign or sub-contract work of the Authority to private sector persons or
otherwise ;

(xxvi) see that the Ordinance and the rules and regulations made there under are
duly observed and to ensure such observance ;

(xxvii) make, formulate, lay down, review and approve policies and plans relating
to the aims and objectives of the Authority ;

(xxviii)advise the Authority on all matters relating to its policies, plans, aim and
objectives ;

(xxix) review the development and growth of S.M.E.s in Pakistan and make
recommendations and policies therefore;

(xxx) make, formulate, lay down and approve regulations on behalf of the
Authority ;

(xxxi) approve the annual financial budget of the Authority ;

(xxxii) seek advice from any person relating to any matter under its jurisdiction ;
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(xxxiii)constitute such committees as it may deem fit or consider necessary or
expedient to assist the Board in the performance of its functions under this
Ordinance and to review the performance of such committees

(xxxiv)maintain and preserve the Fund of the Authority ;

(xxxv) lay down the terms and conditions of the employees, experts, advisers and
consultants of the Authority ;

(xxxvi)to assist and facilitate banks and other institutions in developing
appropriate programmes for promotion and development of S.M.E.s ;

(xxxvii) recommend suitable persons for the appointment as the Chief Executive
Officer; and

(xxxviii) do or to perform such other acts, deeds and things as may be necessary
and incidental thereto.

8. Meetings of the Board.--(1) The Board shall meet not less than twice in a calendar
year.

(2) the Meetings of the Board shall be presided over by the Chairman or, in his absence,
by any other Member as the Board may determine;

(3) Six Members including at least two ex-officio Members shall constitute a quorum for
a meeting of the Board.

(4) The decision of the Board shall be taken by the Majority of its Members, each of
whom shall have a single vote, including the Chairman. In case of a tie, the Chairman or,
in his absence, the person chairing the meeting shall have a casting vote.

(5) No actor proceeding of the Board shall be invalid merely on the ground f the
existence of any vacancy in, or any other defect in the constitution of, the Board.

9. Committees.-The Board may, for the purpose of obtaining advice and assistance in
carrying out the purposes of this Ordinance, constitute committee consisting of the
Members of the Board and any other suitable person or persons as it may deem fit.

CHAPTER IV
THE CHAIRMAN

10. The Chairman of the Board. The Federal Minister for Industries and Production,
Government of Pakistan, shall be the ex-officio Chairman of the Board.
SMEDA

11. Powers and functions of the Chairman: (1) The Chairman may ask for any
information or call for the record of any matter, pending before or decided by the Board,
the Chief Executive Officer or any committee, relating to S.M.E.s and may ask for
information, from any Ministry, statutory body, corporation, agency of the Federal or
Provincial Government concerning any policy, relating to S.M.E.s for review and
appropriate action, as and if necessary. The concerned Ministry, statutory body,
corporation, agency of the Federal or Provincial Government, which after the receipt of
such request, shall, within a reasonable period of time, provide the requisite information
or record to the Chairman.

(2) The Chairman may take appropriate and necessary action on any report submitted to
him by the Board, the Chief Executive Officer, a Member or a committee.

(3) The Chairman may review the performance of the Board, the Chief Executive Officer,
a Member or a committee, from time to time, and issue such directions as the Chairman
may deem fit.

CHAPTER V
THE CHIEF EXECUTIVE OFFICER

12. The Chief Executive Officer.-(1) There shall be a Chief Executive Officer of the
Authority who shall be appointed by the Federal Government subject to such terms and
conditions as may be determined by the Federal Government.

(2) The Chief Executive Officer shall be appointed for a term of three years which may
be extended to only one additional term of not exceeding three years.

13. Qualifications of the Chief Executive Officer.---A person shad not be qualified to
be appointed as the Chief Executive Officer or a Member of the Authority unless he-

(a) is a citizen of Pakistan ;

(b) is not less than forty years of age ;

(c) is a person who is well-qualified, experienced and of known integrity and
competence.

14. Disqualification of the Chief Executive Officer.-No person shall be appointed or
continue as a Chief Executive Officer of the Authority if he-

(a) is of unsound mind and has been so declared by a competent authority;
(b) is adjudged an undischarged insolvent;
(c) ceases to be a citizen of Pakistan, or acquires the citizenship of a foreign state ;
SMEDA


(d) has at any time been convicted of an offence which, in the opinion of the
Federal Government, is an offence involving moral turpitude ;

(e) has been dismissed, removed or compulsorily retired from the service of
Pakistan on the ground of misconduct ;

(f) is found guilty of a corrupt or illegal practice under any low for the time being
in force;

(g) has after the establishment of Pakistan, worked against the integrity of the
country ;

(h) is not capable of discharging his duties by reason of physical, psychological or
mental unfitness or ill-health and has been so declared by a medical board
appointed by the Board and comprising of three registered and licensed medical
practitioners.;

(i) absents himself from all the Meetings of the Board, without sufficient cause
and leave of absence from the Board, for a continuous period of six months or, if
less than three meetings are held within such a period, from three consecutive
meetings of the Board ;

(j) remains absent without leave from the Authority for more than seven days, or

(k) refuses or fails to discharge or, in the opinion of the Board, becomes incapable
of effectively discharging his responsibilities under this Ordinance.

15. Powers and functions of the Chief Executive Officer.-The Chief Executive Officer
shall exercise such powers and perform such functions as may be assigned to him by the
Board.

CHAPTER VI
DELEGATION OF POWERS

16. Delegation of powers, duties and functions.-The Board may, subject to such
conditions and limitations as it may deem fit to impose, delegate all or any of its powers,
duties or functions to the Chairman, the Chief Executive Officer, a Member, a committee
or any officer of the Authority, as it may deem fit.

CHAPTER VII
THE EXECUTIVE SECRETARY
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17. The Executive Secretary.-(1) There shall be an Executive Secretary who shall be
appointed by the Board on the basis of such qualification and on such terms and
conditions as may be prescribed.

(2) The Executive Secretary shall exercise all such powers and perform all such functions,
as may be assigned to him by the Board.

(3) The Executive Secretary shall be responsible for calling the meetings of the Board on
the direction of the Chairman, the Chief Executive Officer or on a requisition by the
majority of the Members, as the case may be.

CHAPTER VIII
ESTABLISHMENT

18. Appointment of employees, etc.-(1) The authority may appoint such employees as it
may consider necessary for the efficient performance of its functions on such terms and
conditions as may be prescribed.

(2) All appointments and promotions in the Authority shall be in accordance with the
service rules and regulations of the Authority.

(3) The Authority may engage experts, advisers and consultants on contract on such
terms and conditions as it may determine.

19. Conditions of service and disciplinary powers.-The Authority shall prescribe
the-procedure for the appointment and removal and other terms and conditions of service
of its employees and shall be competent to take disciplinary action against its employees.

CHAPTER IX RESIGNATION
AND REMOVAL

20. Resignation.-(1) The Chief Executive Officer or a Member, other than an ex officio
Member, may, at any time, resign his office by writing under his hand addressed to the
Chairman, subject to the terms and conditions of his office.

(2) An employee may, at anytime, resign his post by writing under his hand addressed to
the Chief Executive Officer, subject to the terms and conditions of his employment.

21. Removal of Member:-The Federal Government may, on the recommendation of the
Chairman, it any time, remove any Member, other than an ex officio Member, on any one
or-more of the grounds specified in section 14.

CHAPTER X
SMEDA

FINANCE, AUDIT AND ACCOUNTS

22. Fund.-(1) There shall be established a Fund vested in the Authority which shall be
utilized by the Authority to meet all such costs and charges incurred in connection with
its functions under this Ordinance.

(2) The Fund shall consist of-

(a) such funds as the Federal Government may, from time to time, grant to the
Authority;

(b) allocations made by the Federal Government from the Federal Consolidated
Fund or any other financial source available with the Federal Government;
(c) annual grant (budget) obtained from the Federal Government;
(d) non-repayable fees, and income, accruing to it under the law, donation.
bequests, endowments, contributions, and other receipts provided to the Authority
by any person, agency, body, corporate (statutory or otherwise), institution
approved by the Board; and

(e) all other sums or property which may, in any manner, become payable to or be
vested in the Authority.

23. Expenditure to be charged to the Fund.-The Fund shall be expended for the
purposes of-

(a) paying any expenditure lawfully incurred by the Authority or its constituents
for the purposes of this Ordinance; and

(b) repaying any financial accommodation received or moneys borrowed under
this Ordinance and the profit, return, mark-up or interest due thereon, howsoever
called.
24. Accounts, annual financial report and audit.-(1) The Authority shall maintain
proper books of accounts and records on generally acceptable accounting principles, to
explain all its transactions and to give true and fair view of its state of affairs. The books
of accounts relating to a period of not less than ten ears immediately preceding the
current year shall be preserved in good order.

(2) The Chief Executive Officer shall, in consultation with the Board, soon as may be
practicable after the end of each financial year, cause an annual financial report to be
prepared on the accounts and financial activities of the Authority during that financial
year which shall include a balance sheet of the annual profits and losses and an account
of the annual income and expenditure incurred by the Authority.
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(3) The accounts of the Authority shall be audited annually by a reputable firm of
chartered accountants selected by the Board and, together with the report of the Auditors
thereon, be submitted to the Board for approval by the 31st December each year.

(4) A copy of the annual financial report shall be sent to the Chairman and shall also be
made available to the general public.

(5) The audit shall be carried out in accordance with the professional standards of
auditing prescribed by the Pakistan Institute of Chartered Accountants, and shall issue a
report on the audit.

25. Investment. The Authority may insofar as moneys are not required to be expended
under this Ordinance, make such investments as it may determine from time to time.

26. Bank accounts.-The Authority shall open, maintain and operate one or more bank
accounts in its name with any scheduled bank in Pakistan.

CHAPTER XI
ANNUAL REPORT

27. Annual report.-(1) The Authority shall prepare, in such manner and form and at such
time each year, as may be prescribed, an Annual Report which shall include, among
others, a comprehensive review of its performance, the steps taken by the Authority
towards the fulfillment of its aims and objectives and a true and full account of its
operations and activities during the previous year.

(2) The Annual Report of the Authority shall be prepared under the direction of the Chief
Executive Officer.

(3) The Annual Report shall be presented to the Board for its approval by the 31st
December each year.

(4) After its approval by the Board, a copy of the Annual Report shall submitted to the
Federal Government and it shall also be made available to the general public.

CHAPTER XII
GENERAL AND MISCELLANEOUS PROVISIONS

28. Limitation of liability.-The Authority shall not have any liability to any financial
institution save in accordance with law.

29. Right of recovery as arrears of land revenue.-Subject to law, the Authority shall be
entitled to recover all outstanding amounts due to it as if they are arrears of land revenue
under the Land Revenue Act, 1967 (West Pakistan Act XVII of 1967).
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30. Power of the Federal Government to issue policy guidelines. The Federal
Government may, as and when it considers it necessary, issue guideline to the Authority
on matters of policy, not inconsistent with the provisions of this Ordinance or any rules
made there under.

31. Chief Executive Officer, Members, employees, etc. of the Authority to be public
servants.-The Chief Executive Officer, Members and employees of the Authority, when
acting or purporting to act in pursuance of any of the provisions of this Ordinance shall
be deemed to be public servants within the meaning of section 21 of the Pakistan Penal
Code, 1860 (Act XLV of 1860).

32. Indemnity.-No suit, prosecution or other legal proceedings shall lie against the
Authority, the Chairman, the Chief Executive Officer, the Members or employees of the
Authority, in respect of anything done intended or purported to be done orders passed or
proceedings taken by the Authority, in good faith under this Ordinance or any of the rules
or regulations made there under.

33. Winding up.-No provision of law relating to the winding up of bodies corporate shall
apply to the Authority and the Authority shall not be wound up except by the orders of
the Federal Government in such manner as the Federal Government may direct.

34. Common seal.-The Authority shall have a common seal and such seal shall be kept
in the custody of the Chief Executive Officer or such other person as may be authorized
by the Board. All documents that are required or permitted to be executed under seal shall
be specified and authenticated in such manner as may be prescribed.

35. Ordinance to override other laws.-This Ordinance shall have effect
notwithstanding anything contained in any other law for the time being in force.

36. Power to make rules.-(1) The Federal Government may, by notification in the
official Gazette, make rules for carrying out the purposes and provisions of this
Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely :-

(a) administration and conduct of business of the Authority;

(b) conduct of business at the meetings of the Board and the Committees;
(c) constitution of the Committees;
(d) finance, audit and accounts of the Authority;
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(e) employment and service matters of the Authority;

(f) control, restrictions and conditions subject to which the Authority may appoint
employees;

(g) terms and conditions of service of the Chairman, Members and the Chief
Executive Officer;

(h) terms and conditions of service of the employees of the Authority;

(i) powers, duties and functions of the Chairman and Chief Executive Officer;

(j) conditions under which the Board may enter into arrangements with other
institutions and organizations, whether public, private, government owned or
autonomous bodies;

(k) manner in which the accounts of the Authority shall be maintained;
(l) manner in which the Authority may invest its money;
(m) manner, form and time in which the annual statement of accounts and annual
report shall be prepared;

(n) any other matter which is to be, or may be prescribed or in respect of which
provision is to be, or may be made, by the rules.

37. Power to make regulations.-(1) The Board may, by notification in the official
Gazette, make regulations, not inconsistent with the rules, to provide for all matters for
which provision is necessary or expedient for carrying out the purposes and provisions of
this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such
regulations may provide for all or any of the following matters, namely:-

(a) time and place of the meetings of the Board and the Committees and the
procedure to be followed at such meetings;

(b) manner in which and the purpose for which persons may be co-opted by the
Authority;

(c) recruitment, selection and the terms and conditions of service of the
employees;

(d) recruitment, selection and the terms and conditions of service of the Executive
Secretary;
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(e) duties, conduct and functions of the employees;
(f) conduct and discipline of the employees;
(g) constitution and management of provident or other funds for the employees;

(h) preparation of annual estimates of income and expenditure, profit and loss and
supplementary estimates;

(i) annual report;

(j) manner in which payments are to be made by or on behalf of the Authority and
the officers by whom orders for making deposits or investments for withdrawals
or any other disposal of the income or fund of the Authority shall be
authenticated, made or signed;

(k) custody and use of the common seal of the Authority;

(l) efficient conduct and expeditious disposal of the affairs of the Authority
generally; and

(m) any other matter which is to be, or may be prescribed or in respect of which
provision is to be, or may be made, by the regulations.

38. Removal of difficulties.-If any difficulty arises in giving effect to any provision of
this Ordinance, the Federal Government may, by notification published in the Gazette,
make such provisions, not inconsistent with the provisions of this Ordinance, as may
appear to it to be appropriate or necessary for the purpose of removing such a difficulty.

39. Savings.-Upon the commencement of this Ordinance,-

(a) all funds, moneys, properties, rights and interests of whatever kind, issued,
used, enjoyed, possessed owned or vested in the Small and Medium Enterprises
Development Authority in existence immediately before such commencement and
all liabilities legally subsisting against the said Small and Medium Enterprises
Development Authority shall pass onto the Authority as established under this
Ordinance;

(b) everything done, action taken, obligations and liabilities incurred, persons
appointed or authorized and orders issued prior to such commencement shall be
continued and be deemed to have been done, taken, incurred, appointed or
authorized, instituted or issued by the Authority; and

(c) all acts, deeds and thing done, orders passed, decisions taken, directions issued
in pursuance of the Federal Government's Notification No. 5(20) E&FI/98, dated
the 13
th
October,1998, shall be deemed to have been done, passed, taken or
issued under this Ordinance.

40. Repeal.-The Federal Government's Notification No. 5(20) E&FI/98, dated the
13th
October, 1998, is hereby repealed.

GENE
RAL PERVEZ
MUSHARRAF,
President.

MR.
JUSTICE
MANSOOR
AHMED,
Secretary.

Small and Medium Enterprises Development Authority of Pakistan

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