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The present study was conducted to analyze the potential of SMEs in economy of Pakistan. Data were collected from 300 SMEs units by using Simple random technique. A structural questionnaire was developed to get the response from different SMEs units in Pakistan. Data were analyze by using SPSS-17.0 statistical software. It was revealed that SMEs in Rural Sindh has 45% contribution it can be increase by given facilities of marketing of those products. Moreover, SME exports are concentrated in labor-intensive sub-sectors where low wages are important to enhance the comparative competitive position of foreign markets and as well as SMEs do not necessarily export their products directly but through trade networks. The response rate was 90 percent only three units were sick units from last couple of years. It was further revealed that that potential contribution of SMEs to the sustainable growth of the Pakistan is large. Steps should be taken to ensure that more small firms are able to take advantage of government services. This may improve survival rates and stimulate development in lagging areas

Performance of SMEs in Export Growth and Its Impact on Economy of Pakistan