Knowledge Management is not only important for business organizations but now have significance for every country due to the shift from industrial to knowledge base economy. Every country and organization are trying best to manage the knowledge they possesses in order to get and maintain comparative and/or absolute advantage. This paper will focus on the implementation of Knowledge Management in Small and Medium Enterprises of Pakistan and Malaysia. The study proposes a framework for identifying CSFs in implementing Knowledge Management in Small and Medium Enterprises. Beside this, paper also states the method to be used for verifying framework. The method involves questions based on hypothesis to be given to 60 SMEs in Malaysia and Pakistan. This paper will not only summarize the work done in the form of Critical Success Factors by previous authors but also is a way forward for other researchers in the field of Knowledge Management.