SME SECTOR URGES EARLY IMPLEMENTATION OF SME POLICY

THE FINANCIAL DAILY AND THE EXPRESS TRIBUNE 15/10/2020

The Union of Small and Medium Enterprises (UNISAME) said after several years an SME policy was finally presented to the prime minister ( PM) Imran Khan by the National Co-ordination Committee (NCC) for SMEs.
UNISAME president Zulfikar Thaver said that the sector is indeed disgusted by promises. The pandemic then the floods and the inflation. The cost of doing business and cost of production have increased.
The SME units are compelled to close down. Now the electricity charges are increased. The gas charges are increasing. The SME farmers are also in turmoil after the floods. Standing crops have been destroyed.
It is apprehended that SMEs may go on strike in protest against no definite help but only promises.
He hoped the SME policy 2020 is comprehensive as it is very important for it to identify the requirements of the sector and the policy which is framed is for its uplift on fast track.
He enumerated the requirements of the sector as
1. Affordable finance
2. Energy at affordable cost and uninterrupted.
3. High duties on raw material must not make the units uncompetitive.
4. The policy must offer support in marketing, IT, fill the technological gap.
5. Modernize banking, insurance, logistics as these are the pillars of the economy.
6. Plan for industrial estates and SEZs.
7. Develope infrastructure.
8. Policy must have implementation plan and roadmap incorporated in it.
9. It must clearly define the different sectors of
a) manufacturing
b) trading
c) services
d) farming
e) mining
With a definite plan to indicate and outline scope of each.
10) Policy needs to support and strengthen SMEDA and have complete guidelines for the role and funding of SMEDA on top priority basis.
11) The definition needs to be framed to include the micro to the upper medium wisely in view of the fact that the big sector is shy and the upper medium entrepreneurs are in a position to set up innovation and import substitution industries.
Thaver as member of the advisory committee argued aggressively not to narrow the definition and to broaden it in view of the depreciation of the rupee but it is believed the policy makers have excluded those entrepreneurs whose turnover exceeds Rs 650 million instead of Rs 800 million as per earlier definition.
The ministry of industries and production (MoI&P ) sent the policy and action plan to all provincial and federal institutions connected to the sector and sought implementation advice.
UNISAME experts hope the requirements are well looked after in the policy document and implementation is done otherwise it will just remain a document like several other policies.
It is high time that without loss of time the action plan is undertaken to bring about the betterment of the badly beaten sector.

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