Razak urged to boost promotion, uplift of SME on war footing

The Financial Daily 25/10/19
KARACHI: The Union of Small and Medium Enterprises (UNISAME) being badly affected by the slow pace of the Ministry of Industries and Production has urged Razzak Dawood the adviser to the prime minister (PM) Imran Khan on commerce, industry, production and investment to expedite SME promotion and development on war footings, says a Press release.
President UNISAME Zulfikar Thaver said it is very heartbreaking to learn that the SME policy 2019 is still in the final stages. The SME policy is urgently required and every single day matters. It is expected that the SME policy will address many issues of the sector. One expert who had the opportunity to go through the draft said it is more a policy of the Small and Medium Enterprises Development Authority (SMEDA) rather than a sector policy.
Thaver said the MoI&P has failed to appoint the chief executive officer of SMEDA despite several demands of the SME sector. Secondly the issues of finance, insurance, leasing, energy, logistics, technological gap, e-Commerce, SME ombudsman, SME-LC for collective protection of SME units, global marketing support and SME export promotion and value addition bureau remain in doldrums. The SMEs fail to understand the lethargy of the government in taking measures for this sector which can stimulate the economy. This sector is the engine of growth.
It is indeed very painful to witness delays in every aspect of SME promotion and development. Mere lip sympathy is not serving any purpose of the under privileged majority sector.
UNISAME experts are of the firm opinion that the SMEs need finance at affordable mark up, they urgently need credit guarantee insurance at low premium, uninterrupted energy without load shedding of electricity and gas. They need modern logistics facilities inclusive of collateral management.
The promises of a substitute of PayPal remains unfulfilled, The Trade Development Authority of Pakistan (TDAP) has given a deaf ear to the setting up of global marketing support for SMEs. The SMEs need an international gallery for exhibition of their wares on the internet, they need an export promotion bureau and more specifically a value addition bureau.
There is a technological gap and it is high time the policy makers realize this fact and set up a technological institute for the sector. It is very unfortunate that the policy makers do not know the size of the sector. They need to know the number of SMEs area wise, industry wise and offer help after studying specific requirements of each industry.
The SMEs are facing very tough times due to high cost of production because of the depreciation of the rupee on the one hand and global competition on the other hand. Thirdly the buying power has decreased due to inflation. Fourthly domestic industry is suffering due to cheap imports and no incentives from government.

Posted in: Press Releases