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KARACHI, In a significant call to action, Mr. Irfan Iqbal Sheikh, President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), has urged the government to focus on policies that protect and enable the cottage industry in Pakistan, highlighting its critical role in providing employment for 10 million people in the country.
According to FPCCI, during a meeting organized by its Standing Committee on Cottage Industry, which saw extensive participation from across the Sindh province, Mr. Sheikh detailed the instrumental role of the cottage industry in the socioeconomic transformation and GDP per capita growth of many developed and developing economies. He cited examples such as China, India, Bangladesh, and Brazil to illustrate the potential impact of these industries.
Mr. Sheikh referred to World Bank research which points out that Micro, Small and Medium Enterprises (MSMEs) account for half of the global employment and are engaged in 90 percent of economic activities in some capacity. Emphasizing the sector’s significance, he noted the cottage industry’s vital importance in alleviating rural poverty and the impracticality of migrating the entire workforce to urban centers.
Mr. Shabbir Mansha, Vice President of FPCCI, highlighted the disparity between Pakistan’s and India’s export contributions from the cottage industry—25 percent compared to 42.6 percent, respectively—underscoring the sector’s neglect in Pakistan. He asserted FPCCI’s commitment to advocating for the cottage industry within government and policy-making spheres.
Additionally, Mr. Mansha underscored the need for small traders to establish chambers in every city and district of Pakistan to amplify their influence, pointing to the success of women entrepreneurs who have set up chambers in five districts of Karachi.
Mr. Naeem Mir, Chairman of the Supreme Council of All Pakistan Anjuman-e-Tajran, identified key steps necessary to address small trader issues, including the establishment of their own chambers nationwide, the encouragement for all small traders to become active tax filers, and a revision of the SMEs definition to abolish the lower limit of PKR 2 million for inclusion.
Finally, Mr. Abdul Rehman Khan, Convener of FPCCI’s Standing Committee on Cottage Industry, observed that the classification has evolved globally from SMEs to MSMEs, which incorporates all businesses regardless of size, turnover, and employee count, suggesting Pakistan should follow this more inclusive categorization.
The Federation of Pakistan Chamber of Commerce and Industry has made it clear that the cottage industry’s potential is not yet fully realized in Pakistan and is advocating for strategic policy interventions to unlock this sector’s capabilities.
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