SME SECTOR CRIPPLED DUE TO HIGH INFLATION URGES PM TO MANAGE IT ON TOP PRIORITY

The Union of Small and Medium Enterprises (UNISAME) expressed concern at the very high inflation and invited the attention of the prime minister (PM) Shahbaz Sharif and his financial team to manage it on top priority as the SME units have become unprofitable and the common man’s condition has become miserable in the face of daily increases in prices of essential items like food, clothing, medicine and medical care making it difficult to survive.

President UNISAME Zulfikar Thaver voicing the concerns of the under privileged at a local club expressed serious concern at the state of affairs and said the SME units feasibility is lost due to increase in the prices of inputs and increase in cost of production due to depreciation of rupee. The import of raw material is become very expensive, the logistics is costly and likewise the running expenses have shown a sharp increase.
Thaver said mere increase in discount rate will not be able to curb inflation and measures are needed to control the hyper inflation due to which the buying power of the customer has reduced and only bare essential items are being purchased by the common man. This is reflecting in the sales of the SME units and the SME outlets are sitting hand on hand.

Unisame Council members have reiterated that the government needs to impose foreign exchange regulations, control the transfer of funds, check smuggling, hoarding and discourage imports of goods manufactured in Pakistan. Declare austerity, reduce its own expenses and announce energy saving and simplicity in life style.

They emphasized that the government needs to promote productivity, exports, value addition, set up import substitution industries and promote alternate energy systems. The import duty on raw material needs to be reduced to lower cost of production to enable SME units remain competitive. New industries are needed to promote goods to be made of indigenous raw material.
It is believed goods are imported under false declarations and containers and containers of consumer goods are being unloaded on daily basis damaging the local industry. These goods are sold openly in stores and the customs authorities need to be pulled up for this. The PM is requested to give surprise visit to super markets and stores known for selling foreign undeclared goods.

Stressing the urgent need to take bold measures both short term and long term he advised the government to invoke the government and semi government institutions to gear up to face the challenges to the economy and demanded higher efficiency from the state owned institutions, bureaucracy and the ministers.

The SME experts reminded the new government of its promises to reduce corruption, inefficiency and wastage and urged the PM and his cabinet ministers to roll up their sleeves and take anti corruption measures, demand performance from the officers employed by the government and plug wastage.

UNISAME Council expressed surprise as to how the government could remain a mere spectator to the sharp increase in the prices of vegetables, fruits, grains and kitchen items making it impossible for the common man to survive.

UNISAME Council invited the immediate attention of the government to the fact that the common man is unable to eat even one square meal and as a result the education and medical needs of the family are totally ignored. The situation is getting from bad to worse and demands the immediate attention of the coalition government.

Posted in: Press Releases