SMEs are the heroes of the economy

The Union of Small and Medium Enterprises (UNISAME) in an urgent message to the prime minister (PM) Imran Khan pointed out the fact that SMEs are the heroes of the economy who have faced the challenges of time and never left the country unlike the big businessmen. The SMEs deserve the best attention and priority of the government. The government needs to declare priority for the sector without loss of time.
President UNISAME Zulfikar Thaver invited the attention of the PM to the urgent requirements of the sector. The most important being finance at affordable mark up. The small to medium entrepreneur has to pay almost 20% markup and the micro entrepreneur borrows at an alarming rate of almost 35% markup. This is a setback to many MSME units and even the farmers who are finding it beyond their means.
Secondly Thaver stated that energy is costly and is interrupted by load shedding of electricity and also gas causing loss of production. The electricity supplies to illegal connection areas is shut for long hours and unfortunately the MSME units who are paying their bills regularly are also suffering. This needs to be looked into not to let the bonafide subscribers to suffer.
The import duty on raw and packing material needs to reduced as the SME units are already paying for imports a high parity rate due to depreciation of rupee and the duty is calculated on the invoice value inclusive of freight and other charges resulting in high landed cost.
The SMEs need industrial estates and special economic zones with concession and soft terms for payment of land.
An SME specific bank is needed to cater to the sector, The Small and Medium Enterprises Development Authority (SMEDA) immediately needs a chief executive officer (CEO) , sufficient funds and officers to outreach the sector. The size and scope of SMEDA needs to be widened to do satisfactory SME promotional and development work on war footings.
Banking, insurance, leasing and logistics are the pillars of the economy and the economy needs modern and dynamic institutions. If the SMEs are included along with the farmers in the plans, the economy will be stimulated the UNISAME experts reiterated.
UNISAME Council fails to understand that despite the repeated demands of the sector the policy makers are not seriously looking into the requirements of the majority sector which is the lifeline.
The big businessmen in private sector are shy at the moment because of the prevailing circumstances but the medium and the higher medium entrepreneurs are ever ready despite the circumstances. They need support, help, encouragement, facilities and incentives from the government and the government will be making the biggest mistake if it fails in hand holding of the sector which has vast potential. This sector is considered as the engine of growth and is a vehicle for employment.

Posted in: Press Releases