SMEDA expands industrial stitching project

LAHORE:

The Small and Medium Enterprises Development Authority (SMEDA) held a consultative session with stakeholders from the textile garments manufacturing sector to align the second phase of its Industrial Stitching Units project with the government’s Uraan Pakistan programme, aimed at boosting exports through Small and Medium sized Enterprises (SMEs).

The session, presided over by SMEDA Chief Executive Officer Socrat Aman Rana, was attended by private sector representatives from the All Pakistan Textile Mills Association (APTMA), Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), and Pakistan Hosiery Manufacturers and Exporters Association (PHMA). Officials from the Ministry of Industries and Production and the Ministry of Planning, Development, and Special Initiatives also participated via video link.

The SMEDA CEO stated that the 1,000 Industrial Stitching Units project was approved by the government in 2018 to provide matching grants (60:40) for new business startups and existing SMEs to establish industrial stitching units. The first phase of the project, deemed a success, is set for completion by June 30, 2025. SMEDA is actively preparing PC-1 for Phase-II in alignment with Uraan Pakistan’s objectives. He added that Phase-II will establish 350 units, compared to 150 units in Phase-I.

Under Phase-II, 100% grants will be allocated to export-oriented units, unlike Phase-I, which primarily focused on the domestic garment sector. The grant size for Phase-II has also been increased from Rs1.8 million to Rs5.0 million, supporting approximately 50 machines per unit, enabling businesses to handle export orders more efficiently.

Project Director Muhammad Raza, in a presentation, shared that under Phase-I, 150 units were facilitated nationwide, with 76 in Punjab, 35 in Sindh, 17 in Khyber-Pakhtunkhwa (K-P) and Balochistan, and one in Gilgit-Baltistan. He highlighted the impact assessment of 93 units, noting that Phase-I created 1,208 new jobs and promoted women’s entrepreneurship, with 41% of the stitching units owned by women.

Private sector participants acknowledged the success of Phase-I, praising the transparency of the grant process and SMEDA’s technical support. They also provided recommendations for Phase-II, which will now cater to multiple textile export sectors, including readymade garments, hosiery, knitwear, denim, leather garments, towels, and sports goods.