PLANNING MINISTRY IN THE PROCESS OF FINALIZATION OF VISION PAKISTAN 2025

The Ministry of Planning,Development and Reform (MoPD&R) is in the process of finalizing ” Pakistan Vision 2025″ which aims to achieve competitive environment for the small to medium sized enterprises (SMEs) with conditions that facilitate them with focus on access to finance, promoting entrepreneurship and innovation. The intent is to improve their contribution to economic growth, employment and poverty reduction.

President Union of Small and Medium Enterprises (UNISAME) Zulfikar Thaver along with Alamgir Chaudhry the chief executive officer (CEO) Small and Medium Enterprises Development Authority (SMEDA) will attend the” Round Table SME Growth Conference” (SMEGC) aimed at developing a detailed policy agenda and design capacity building for achieving the targets of the Pakistan Vision 2025. The SMEGC will be chaired by Prof Ahsan Iqbal minister for PD&R on 29th April 2014 at the ministry of PD&R and is expected to identify key areas and to recommend notions to facilitate the policy making.Federal commerce minister Khurram Dastagir and senior officials of ministry of PD&R and other institutions are going to participate in the SMEGC. Kaleem Ahmad fellow at the ministry confirmed that the recommendations at the SMEGC will be considered in the finalization of the strategy.

Thaver said that SME promotion and development is no charity it is the responsibility of the state and advised the MoPD&R to facilitate, encourage, support and motivate the primary sector which is very big from grass roots level and impress upon the SMEs to modernize their farms, agricultural produce processing, manufacturing units and services. The best value addition could be done by SMEs provided they are facilitated.

He outlined the need for providing finance to SMEs at affordable mark up and with repayment facilities on pay as you earn schemes.
Secondly he stressed the need for SME credit guarantee insurance without which the banks will not finance the sector as various schemes of the State Bank of Pakistan (SBP) have not achieved the desired results as banks are not prepared to take risk.

There is urgent need for incentives and it is very essential that industrial estates are established with in house facilities f alternate energy generation and the land is allotted to the SMEs at concession and on installments.

Regarding training he pointed out that there are institutions for managerial training but training for operators, supervisors is lacking. Training at all levels is required.

The taxation system needs to be revisited, it should be based on lower taxes and higher collection and tax benefits for new entrants, innovative industries, import substitution industries and export industries based on indigenous raw material.

The MoPD&R must recommend duty free imports of energy generation devises, raw and packing material and income generation vehicles, farm equipents, tractors, harvesters and other modern farm machinery.

The prime minister’s youth loan scheme is appreciated but its scope enhanced to include every deserving youth having sound business plan on merit and not left to balloting.

The MoPD&R needs to examine the report of the International Finance Corporation (IFC) of World Bank regarding desired changes in SMEDA for making it a very effective body for SME promotion and Development.

Other aspects which need to be considered are the establishment of SME chamber of commerce, technological institute, export house, ombudsman for SME grievances, SME specific fund or bank, setting up of dehydration units and cold storage units near farms and logistic systems including collateral management.

Basically the SMEs need conducive environment,educative information, technology, finance, incentives and marketing support for growth and the government is duty bound to cater to their requirements being the majority sector and the backbone of the economy. It is also the back forte of the large sector.

Posted in: Press Releases