Pakistan ranked among world top countries for support to SME sector during pandemic
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The “Impact of COVID-19 on SMEs” survey, conducted jointly by Small and Medium Enterprises Development Authority (SMEDA), Asian Development Bank Institute (ADBI), and Asian Productivity Organization (APO), ranks Pakistan third, in terms of support provided by the government to small and medium enterprises (SMEs) to mitigate the impact of COVID-19.
The online survey was conducted during August and September 2020 and depicts data collected by 236 SMEs from Pakistan.
According to the survey, a majority of the enterprises in Pakistan were facing cash flow (82 percent) and a shortage of raw material (65 percent). Despite this, 11.44 percent of SMEs expect their sales revenue to increase compared to 2019, while 12.29 percent of respondent enterprises expect their sales revenue to remain the same. ------------------------------
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The same survey was also conducted in other comparable economies in the region, including Indonesia, India, and Bangladesh.
Among the changes reported in the business environment from February to April 2020, Pakistan was the best performer in the region (in terms of percentage). A minority of respondents (36.44) percent reported a significant decline in domestic demand.
In comparison, 72.29 percent of enterprises in Bangladesh, 50 percent in India, and 42.52 percent in Indonesia reported a significant drop in domestic demand.
In terms of government support, the Pakistani government’s electricity support package was highlighted as an important catalyst in supporting SMEs directly during the economic downturn brought by the pandemic.
The survey showed 27 percent of respondents reporting that they received support through the payment of utility bills.
