MICRO TO MEDIUM SECTOR AGGRIEVED-SEEKS PM’S HELP

The Union of Small and Medium Enterprises (UNISAME) being badly affected by unfriendly policies of the government has sent SOS to prime minister (PM) Imran Khan to save the micro to medium (MSME) sized sector from turmoil and setback.
President UNISAME Zulfikar Thaver expressing dissatisfaction on a local television channel said the policies are unwise, illogical and irrational and wondered who is advising the PM. The sector needs friendly policies and encouragement, support and help. MSME promotion is no charity and it is the responsibility of the state. It is incumbent on the PM to uplift the sector the SOS underlined.
Thaver said the government is heading in the wrong direction. The government can ill afford to disturb the economy and especially the MSMEs. All promotional strategy begins from grass root level and all monitoring and regulation is done from the upper level. Unfortunately the worst affected are the MSMEs. All reforms have badly hit the micro and the small and they are unable to survive.
He lamented the reduction of sales tax turnover exemption limit of Rs 10 million to Rs 3 million. This is uncalled for considering the depreciation of the rupee and instead of increasing the limit they have reduced it. Are they not aware of the unemployment and the fact that the home based and cottage industry sector both in urban and rural areas need to be promoted, encouraged and supported. Where are all the promises made to the under privileged sector.
Secondly he said the MSME sector has become noncompetitive due high rate of interest. Without being competitive the exports will not be increased and without exports the rupee will not become strong. The SMEs need finance at subsidized rates to meet the global challenges..
Thirdly domestic industry needs to be supported and the government needs to campaign for ‘Made in Pakistan” culture.
He urged the government to appoint chief executive officer of the Small and medium Enterprises Development Authority (SMEDA) urgently and expedite the SME policy giving priority to sector.
UNISAME experts invited the kind attention of the PM to the lack of technical, marketing and financial support to the sector.
There are no incentives for innovation and no tax relief for new entrants. The medium and higher medium sector needs to be geared up to set up import substitution industries, modernization to improve quality and bench mark, value addition is the need of the hour.
The import of items which are made in Pakistan of international standard need to be discouraged and the domestic units need to be given an edge to compete.

Posted in: Press Releases