Information Networking for SME Development in Pakistan: A Project of UN Industrial Development Organization (UNIDO) Integrated Programmes for Industrial Development in Pakistan

COMSATS and UNIDO have been collaborating closely to support the sustainable development of Small and Medium Enterprise (SMEs) in Pakistan and enhance their international competitiveness by helping them realize their full potential through providing efficient institutional support facilities. The subject project entails establishment of a sustainable web-based industrial information network providing information services and value-added support to SME. The Information Network would have the following objectives / expected outputs:

Objectives / Expected Outputs

1. Strengthening the capacities of existing SMEs concentrating largely in the vicinity of Lahore and Karachi, and facilitate development of SME sector development in the potential regions of Balouchistan, North West Frontier Province and Azad Jammu & Kashmir.
2. Dissemination of information on SME policies, regulations, industrial cooperation and other vital industrial activities to support sourcing of new technologies and marketing activities, opening new export markets, promoting increased investment inflow and financing opportunities.
3. The information access and services would enhance the capability of SMEs to generate the value-added products for increasing competitiveness in international markets.
4. The Network would play a dual role by acting as an information hub for SME development and an e-commerce platform for the Pakistani business community in future.
5. The indirect outputs of the project implementation would include reduced level of poverty, increased employment opportunities, enhanced business activity and international trade, increased inflow of investment and technology and overall strengthening of national economy.

Project Mechanism

The project mechanism entails Information Networking of the National Support Institutions (including export promotion agencies, institutes of standards and industrial research, trade and development agencies, chambers of commerce and industry, export guarantee funds, export development banks, etc.) besides providing access to international information resources regarding export markets, technology, raw materials etc. The latest information and networking technologies, such as Internet would be used to provide efficient services.

To make the project self-sustainable in the longer run and to avoid duplication, the project envisages integration of the national efforts by identifying and gathering all the stakeholders at one platform. The National Stakeholders (relevant government bodies, regional SME authorities & associations, private sector, potential donors and development agencies, financial institutions etc.) would own the network and would ultimately be responsible for running the project as a commercial entity. The expected contribution from the stakeholders may be in the form of Content, Expertise, and Finances. UNIDO would provide its expertise for need assessment, formulation of business plan and training throughout the establishment phases of the commercial entity.

Initially, at the pilot scale, Textile and Leather industries have been selected as target sectors. It has been agreed in principle that the project would initially be launched with COMSATS providing the technical facilities to host the network and SMEDA as the leading partner to provide and update content. In the second phase, a commercial entity could be established as joint venture among all stakeholders based on the business plan vetted by all partners. To kick of the project, a stakeholder's workshop was organized jointly by UNIDO, COMSATS and SMEDA from Jan 30-31, 2001. The objective of the workshop was to introduce the project concept to the potential counterparts and to identify their contributions to the programme both in cash and kind.

COMSATS ROLE /CONTRIBUTION

COMSATS is acting as the major counterpart of UNIDO in the subject project. Broadly speaking, COMSATS contribution to the programme would include provision of Information and Communication Technologies related expertise and support to successfully implement web based information network and to ensure smooth running of operations. COMSATS is a principle contributor in the following activities:

1. During need assessment phase, provision of ICT related requirement analysis (analysis of hardware and software needs for the network), and assistance in formulating technical and business plan.
2. IT Consultancy (hardware procurement, software development, web applications development and deployment, networking solutions).
3. Providing Web Hosting facilities for the portal, Internet connectivity and establishment of appropriate connections for the network.
4. E-commerce solutions development and consultancy (B2B, B2C).
5. Assistance in setting up and managing country wide Business Centres cum Cyber Café operations.
6. Provide necessary training for using the network contacts and provide information and value added services.
7. Conducting marketing activities in collaboration with other stakeholders to promote the use of the network 8. Provide assistance in mobilizing funds.