Ayesha Saba

Small and medium enterprises in Pakistan need to prioritise quality and innovation, foster collaborations with their Chinese counterparts and understand market demands to unlock their true potential. Talking to WealthPK, Malik Sohail Hussain, Chairman of Coordination Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said for many years, Pakistan and China have shared a robust and enduring bond exemplified by their strong trade relations. “As Pakistan solidifies its trade partnership with China, it opens avenues for strengthened economic ties with Central Asia.

This strategic alignment has not only enhanced Pakistan's regional influence but also underscored its potential as a key player in the global marketplace.” “China’s high-standard opening-up policy, which promotes transparency, reduces restrictions on foreign investment, and ensures fair competition, presents a promising opportunity for Pakistani businesses,” he noted. He said that Pakistani SMEs must adopt practices that resonate with Chinese consumer trends, including quality assurance, branding and adherence to regulatory standards. Sohail further highlighted the need for proactive engagement.

“Pakistani SMEs must not only understand market dynamics but also collaborate with Chinese counterparts to overcome logistical hurdles,” he added. The FPCCI official pointed out that there were a few challenges that prevent Pakistani SMEs from aligning with Chinese standards. “They include lack of awareness about Chinese regulatory frameworks, limited access to financing for technological upgrades and insufficient training in global business practices.” “Most SMEs in Pakistan operate on traditional lines with minimal technological integration,” said Farhan Khan, an industrial consultant.

“This makes it difficult for them to meet the quality standards required in markets like China.” He suggested that the government and private sector collaborate to devise targeted programmes for SME capacity building. He said that with the right strategies, Pakistan’s SMEs have the potential to establish a strong presence in China. “SMEs are the backbone of Pakistan’s economy,” he remarked. “If they can successfully align with Chinese standards, it will not only increase export revenues but also drive industrial modernisation in Pakistan.” “By leveraging CPEC infrastructure and fostering an ecosystem that supports SME development, Pakistan can transform its small-scale industries into globally competitive enterprises,” he said.

Credit: INP-WealthPk