Best key lies in increasing exports, allowing imports of raw materials for SMEs… The Financial Daily 26/01/23

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Naveed Qamar federal commerce minister to the fact that imports and exports are like warp and weft of an economy and both considered favourable when more or less equal. If import of essential raw material is discouraged or curbed it will reflect on exports.
President UNISAME Zulfikar Thaver said Pakistan is an import economy and imports raw materials, packing materials, machinery and parts, solar panels, chemicals, medicines and almost everything under the sun.
He lamented that in all these years inspite of the fact that we are an agricultural country having many crops , vegetables, fruits, we have poultry, dairy, livestock, we have 4 seasons, rains, sunshine and consider ourselves a blessed country and truly are but unfortunately we do not have political and trade leadership and we never focused on industrialization and not even agrobased industries to the extent we should have done.
We never understood what productivity means and wasted time energy and money.
He regretted that we kept importing non essentials, luxury cars and shamefully even jams jellies and marmalade and wasted valuable foreign exchange. Today we are in dire need of foreign currency and as a consequence of our own foolishness and easy life we have become dependents and are in huge debts sadly.
The Unisame Council members pointed out that other factors are corruption, inefficiency, wastage of energy, water, food and above all time.
The State Bank of Pakistan (SBP) had to curb imports and now is only allowing bare necessities and this state of affairs might last till we increase our exports and our overseas Pakistanis, friendly countries and ofcourse IMF bails us out till then all imports will be tailored and there will be closure of industries and unemployment and depreciation of rupee.
The Unisame experts suggested that we need to ask for suppliers credit facility from China and other countries on whom we depend for chemicals, plastic granules, oil, machinery and parts and especially Japan for machinery and automobile engines to keep our industries functioning. The Exim Bank could open accounts of foreign suppliers and keep remitting their bills on maturity dates.
This could give crutches to the economy.
They said containers already imported and lying at port are being released/cleared which will infuse some strength to the economy but it is merely a first aid situation to a badly damaged economy. All contracts are being renegotiated and credit period are being extended and revised hopefully and favourably.
The real solution lies in increasing exports and this can be done by value addition and focusing on our geographical indication (GI) items and on untapped markets. Exports need to be increased on war footings and the SME sector could play an important role. The much needed SME export promotion bureau and the value addition bureau need to be established and put in gear. Unfortunately although the steering committee was formed some years ago but again unfortunately shelved for reasons best known to the policy makers.
The UNISAME Council has invited the kind attention of the Commerce minister that it is very important that steps are taken right away to make things happen and mere meetings and discussions will not increase exports. The SME majority sector must be called upon to play its role to increase exports of textiles, footwear, leather goods, sports goods, surgical goods, cutlery, commodities, electrical goods, light engineering goods, and foodstuffs and must be supported as best as possible.
The government can beg, borrow or sell its assets but arrange for funds to enable import of raw materials for the SME units to enable them achieve export targets.

Posted in: Press Releases