This study explores the policy framework, opportunities, and constraints faced by Small & Medium Enterprises (SMEs) in Pakistan. The study focuses on figuring out avenues of development, challenges, and prospects for SMEs in Pakistan. The research covers the perspectives of policymakers, policy facilitators, and the SMEs (of the Multan district). The findings suggest that though the government authorities are well aware of opportunities and challenges, SMEs are not well prepared due to lack of formal business set up with no spending on R&D. Moreover, policies for the integration of SMEs in the mainstream are missing. This research emphasises that policy measures must be undertaken to strengthen our domestic industry, including; announcement of a new SME Policy, mass awareness, and registration campaign for SMEs to integrate them with global value chains and international production networks.