I mean with profound feelings of certainty that if we could develop Small Enterprises (SE) for manufacturing classified & chosen export products to produce in special clusters of Zones is an practical approach to search and enter the Global market & find potential to EXPORT to them.
This way of coordinated efforts will not only enhance the EXPORT volume but will also be able to reach targeted ONE Billion US$ EXPORT within a given time.
I am confident about presenting this action plan in line with my vision for “One Zone One Product One Billion US$ Export.” This strategic initiative aims to not only revitalize our engineering exports but also position Small Enterprises Zone with one product, for example, ONE PRODUCT of Aluminium Die Casting as a global exporter in specialized engineering products.
“Unveiling Opportunities for Small Enterprises“
International Market Research to identify the buyer and product. To exhibit their products in Global exhibition to visit and meet the buyers.
“The Import Value of the World Products”
Aluminum Die casting is shown as US 72 Billions in 2020 and forecast 2032 is US$ 144 billions
Toys is shown almost as 100 billions in 2023 and forecast 2028 is US$ 180 Billions
Shoes is shown as 390 Billions in 2023 and forecast 2028 is US$ 470 Billions
Examples:
1. Focus ONE PRODUCT i.e Aluminum Die Casting :
Recognize the vast opportunities in Aluminum Die Casting and prioritize efforts to strategically focus on this product category for EXPORT.
2. Special EXPORT Policy for Zone Small Enterprises:
- Provide zone Small Enterprises with special support of financing at 3%,
- Participating in exhibition at 80% discount on international trade fairs at least 3 exhibitions in a year.
- Incentive of EXPORT rebate of 5% on export sales amount.
- One time import of machinery should be made available to enterprise free of all taxes and duties according to same policy of SEZ companies.
- All SEZ companies in the region should be made liable to procure 10% of materials and sub components from Small Enterprises. This will amplify visibility on the domestic and global stage to find place in the market.
- Small Enterprises need support for technical standards and international certification to meet the requirement of buyers in EU & USA.
All these actions are the requirement demanding a specific EXPORT policy for Small Enterprises Zone to be declared and notified by the Government to achieve ONE BILLION US$ EXPORT target in certain time of 5 years
3. Cost Effectiveness:
Offer zone Small Enterprises special minimum electricity rates in line with Bangladesh & India or explore alternative cost-effective sources to ensure for making our products globally competitive. Solar and wind energy is the real options as minimum energy cost.
4. Zone Location at Karachi – PIDC Area:
Without pondering over the land requisition, at the beginning stage, I suggest to utilize the land of 5 Acres out of approximately 17 Acers available existing land of PIDC opposite SEZ near Steel Mill Area. AT & TC was previously situated in some portion of this land. This will serve as a model case for promotion and enhancement of export.
6. Land Allocation for Small Enterprises:
Allocate land within the zone to small enterprises, offering them a 10-year installment plan for 1200 Square yards at Rs 7.5 million. This will empower small enterprises to thrive and contribute significantly to my export goals.
7. Income & Sale Tax Incentives:
Grant zone enterprises a 2% income tax incentive for a minimum of 10 years, providing them with the financial stability needed for sustained growth.
Zone enterprises will produce goods to export and has to procure local raw materials required for production. At this point zone enterprises pays 18% Sale Tax which will appear on weboc on export and Sale Tax is refundable. Refund is a problematic issue in FBR and time consuming activity. Enterprises immediately need refund of sale tax just after exporting Goods. The Government is to devise a procedure for immediate refund of Sale tax.
8. Focus on Production and Export Orders:
Encourage zone enterprises to prioritize production and meet export orders efficiently. Refer my Aluminum Die Casting market size of the world standing at US$ 72 Billion and I am confident to get Pakistan share at least one and a half percent from Aluminum Die Casting Products.
9. International Market Research:
Continuous efforts in International Market Research for obtaining orders engaging regular productivity amongst the Small Enterprises. One Small Enterprises is to be established as a EXPORT HOUSE on behalf of ZONE Small Enterprises for market research to obtain data collection and negotiation to finalize export order from foreign companies. These orders will be placed to Small Enterprises in the ZONE and the Marketing Small Enterprises will export the products from the Zone.
I believe that the successful implementation of these actions will play a pivotal role in realizing my vision of ONE ZONE ONE PRODUCT ONE BILLION US$ EXPORT.
Let us work together as a NATION with a firm belief, will, dedication and support of the government to bring a fundamental shift in the industrial policy only designed and exclusively for Zone Small Enterprises. SMEs have been recognized as the backbone of industrialization. To achieve substantial growth by industrialization we have to establish, promote and support Zone Small Enterprises.
By Mashood Khan, Director – Mehran Commercial Enterprises / Expert Auto Sector / Former Chairman PAAPAM
Published in Automark Magazine’s April-2025 printed edition.