POLICY MAKERS URGED TO INCLUDE PAKISTANI FLAVOUR WITH IMF AGENDA

The Union of Small and Medium Enterprises (UNISAME) advised the government to implement the IMF agenda with Pakistani flavour for favourable results.It is very important for the policy makers to understand the nature of Pakistan’s economy before taking steps on IMF prescription. The micro to medium sized sector must be spared and not be subjected to increase in taxes and duties.
Zulfikar Thaver president UNISAME said whilst we fully appreciate the advise for broadening tax base and increasing tax rate for the higher income bracket, we disagree with the policy to increase taxes and duties which burden the common man.
It is pertinent to note that the present rate of inflation has made survival difficult for the under privileged.
Thaver said there is need for cheaper goods of daily use for the common man and for this the outlets must be made available, where the low income citizen could purchase his or her requirements at concessional rate on a ration card from nominated stores in every area. The Utility Stores need to be restructured and their scope broadened to enable them outreach the common man comfortably.
The government needs to support the micro entrepreneurs and the recent step to reduce the sales tax exemption limit from 10 million turnover to only 3 million per annum is beyond comprehension.
Thaver said the SMEs are considered the engine of growth the world over and we have before us examples of China and the far east yet our policy makers have not taken concrete steps for boosting the sector.
The SME sector needs help, support and facilities for modernization, up gradation and transfer of technology to fill the technological gap. The sector also needs global marketing support and above all financing at subsidized rates. The Trade Development Authority of Pakistan (TDAP) needs to be awakened to work hard and do more for the SME sector and this can best be done by opening a value addition department for the sector jointly with the Small and Medium Enterprises Development Authority (SMEDA) on war footings. Value addition will increase exports and it is the lifeline for SMEs.
UNISAME has pointed out that because of imports and smuggling the local industry is suffering and the attention of the policy makers is invited to the dumping of foreign goods in our markets. The steps taken to curb smuggling are appreciated. It is now very important that imports of goods which are made in Pakistan must be discouraged and subjected to heavy duties contrary to IMF and WTO not to disallow or discourage free trade.

Posted in: Press Releases