Government To Provide Maximum Support To SMEs

Govt providing maximum support to SMEs: Dar
KARACHI: Federal Minister for Finance and Economic Affairs Senator Muhammad Ishaq Dar said the government fully realized the importance of small and medium etnerprises (SMEs) in an economy and was providing maximum support to them.
He assured more incentives to the SMEs as this sector was backbone of the country’s economy.
The minister was speaking at an interactive session with the business community here at Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
On pointation by FPCCI President Mian Muhammad Adress, the minister agreed that SMEs deserved more financial cover and they should be provided loans at soft terms and lower rate of mark up.
He also requested Governor State Bank of Pakistan (SBP) Ashraf Mehmood Wathra, who was present there along with Presidents of Commercial Banks, that SBP should ensure more credit facility with easy terms and conditions for SMEs, which were facing finance problem.
“Governor, please, give mandatory task to your team to strengthen SMEs. We have to take Pakistan’s GDP to 7 percent in next three years and SMEs are important in this regard,” he said addressing to the SBP Governor.
He also made clear that no SME bank or development financial institution (DFI) would be closed, and in case of sale the buyer would have to continue it as SME Bank or DFI.
The Minister sought help from the leadership o FPCCI and other trade bodies to mobilize the businessmen to come under tax net and promised to provide more incentives and facilitation to trade and industry in the country.
If the number of tax-payers is increased to five million, the government would provide more incentives, he added.
About the withholding tax (WHT), he advised the committee members — from FPCCI and FBR- to resume their sessions in Islamabad and find solution before November 30, 2015 as the grace period given by the Government to non-filers along with cutting down WHT to 0.3 percent on bank transactions.
He assured that process of payment of refunds would be expedited.
He recounted the achievement of PML-Nawaz government in social and economic sectors.
He said up to July 2016, the deficit would be cut down 4.3 percent from 5 percent of Gross Domestic Production (GDP).
SBP Governor assured the business community that the Central Bank would be making its best efforts to provide more financial support to industry and trade.
SMEs financing is SBP’s priority. For modernizing SMEs, these were being provided loan at 6 percent which is an incentive.
He reminded that discount rate was ideally low and that up to 37 percent benefits of lowering petroleum prices were passed on by the government.
In the given positive environment, the business should take full benefit, he emphasized.
FPCCI President Mian Muhammad Adress, Chief Executive Officer, Trade Development Authority (TDAP) S.M.Muneer and former vice president FPCCI, Zubair F.Tufail, Chairman FPCCI Standing Committee on Finance and Banking, Dr. Mirza Ikhtiar Baig apprised the Minister of various issues relating trade and industry in the country.
Chairman FBR, Nisar Muhammad Khan and Deputy Governors of State Bank Riaz Riazuddin and Saeed Ahmed were also present among the cluster of the business community. – APP

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