This study has examined the degree of innovation, planning and integration in SMEs of Gujranwala, investigating how these factors contribute to the growth of SMEs in the preview of CPEC. The innovation is found limited to just copy and imitation of new arrival products made by the big companies, furthermore the SMEs also admit the benefits of integration for a business but were found not ready to do requisite investment. As far as planning is concerned, it is mostly done by the owners of SMEs and firms are less likely to invest on human resource development. The lack of resources and unavailability of structured government support are also the reasons why the SMEs are lacking in innovation, integration and planning. Furthermore, the SMEs perceive CPEC as a threat and think that the local businesses cannot survive in the presence of Chinese products in the market. However, majority of the SMEs were unaware about the CPEC details and its benefits to the country. The only benefit that SMEs owner think that they can get from the CPEC is “trading” (middleman business). However, in this regard government should come forward and create awareness about the CPEC and should curtail the prevailing myths about it. Supervisor:- Dr. Iftikhar Ahmad