UNISAME URGES GOVERNMENT TO ANNOUNCE SME POLICY FORTHWITH

The Union of Small and Medium Enterprises (UNISAME) fails to understand the delay in the announcement of the SME policy which is overdue. It is expected that the SME policy would go a long way in resolving many issues of the sector and it is very essential that it is announced without delay. It is believed that the policy is ready and awaiting approval of the cabinet.
President UNISAME Zulfikar Thaver said the policy makers are well aware of the fact that the SME sector is the vibrant sector, backbone of the economy, the engine of growth and the vehicle for poverty alleviation and best for creating employment and yet see no urgency in the announcement and implementation of the SME policy.
He said the government does not even know there are how many million SMEs in Pakistan and the number of SME farmers as well as both are considered as income generators and self employed.
A survey is needed to determine the size and strength of the sector. The SME sector is the majority sector and capable of growth and stimulating the economy and deserves priority and any neglect on the part of the government is damaging for the sector.
It is pertinent to note that the SMEs contribute to 30% of the exports and most of them are involved in value addition and they contribute 35% to GDP and offer employment to about 40% of the labour force.
The UNISAME Council has urged the government to address the impediments to SME growth which are lack of education, finance, proper environment, infrastructure, logistics and the energy crisis. In order to promote, encourage, facilitate, motivate and upgrade the SME sector.
UNISAME had, suggested to the government to take the following measures in the SME policy and is confident the policy makers have incorporated in the SME policy for fast track promotion and development of the sector. It is reported that most of the suggestions have been well received namely:
1. To educate the SMEs about the new technologies in production, management, marketing, accounting & inventory control
2. Encourage the SMEs to modernize and make plans for balancing and replacement of their units and arrange transfer of technology.
3. Facilitate the SMEs through modern banking, leasing and insurance as these are the pillars for growth.
4. The SMEs in order to progress need law and order and protection and need to feel safe.The SMEs need a SME Police Liaison Committee (SME-LC) on the pattern of CPLC.
5. The infrastructure needs to be improved on war footings.
6. The SME sector is dependent on logistics which encompasses transportation, warehousing and collateral management.
7. The need for alternate energy is being felt due to the energy crisis.
8. There is an urgent need of Special Economic Zones (SEZ) and industrial estates in all the provinces.
9. The government should adopt a policy of fair taxation and also give tax benefit to innovative industries and new units.
10. The SMEs need their own chamber of commerce and also their own export promotion bureau
11. The NPO, EDB, SMEDA, PCSIR and TDAP are all dedicated institutions and working hard for the promotion and development of the SMEs together with the commercial banks but they all need to co-ordinate with one another for integrated efforts. The State Bank of Pakistan (SBP) has formed the SME Pakistan Forum and it is expected that the forum will strive for integrated efforts. The government should strengthen and equip SMEDA and broaden its scope to enable it to reach the SMEs involved in manufacturing, trading, farming and services.

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