UNISAME COMPLAINTS TO PM ON SLOW PACE OF SME PROMOTION

he Union of Small and Medium Enterprises (UNISAME) being badly affected by the slow pace of the government in SME promotion and development has invited the attention of the prime minister (PM) Imran Khan to the need for prompt high impact positive steps to enable the sector meet the global challenges facing it on fast track basis.
President UNISAME Zulfikar Thaver said the Council of UNISAME has pointed out the following urgent requirements of the sector to the PM which is badly suffering.
The experts said that there is a technological gap and the SME units involved in agrobased industries, farming and manufacturing need to fill the gap by adopting new technology and for this the Small and Medium Enterprises Development Authority (SMEDA) needs to carry out upgradation of several industries as per its articles.
Secondly the imported raw material of several industries is more costly than the imported finished goods available in Pakistan and for this reason no investor is prepared to set up industries at home. The import duties on raw material needs to be revised immediately and products made from indigenous raw material must be exempted from sales tax to make it competitive.
Thirdly there is no marketing support for global marketing. The Trade Development Authority of Pakistan (TDAP) must set up an SME gallery on the internet to exhibit made in Pakistan products a free business portal is the need of the hour.
He lamented that there are no tax exemptions for new industries especially innovative industries by SMEs. The farm sector is badly affected due to costly farm inputs.
Other requirements of the sector are land at concession as land for industries has become very costly. The commercial banks are not comfortable in financing SMEs and demand immovable property as collateral in fact banks are not inclined to take risk. They need to learn risk management.
In fact they are not prepared to take calculated risk under the rules of collateral and risk management.
Training is also lacking and the promised SME institute has been delayed, the so called SME Bank is not a specific SME bank, the promised Exim Bank is still not functioning and export credit guarantee is also not fully in gear.
The sector needs a bureau like the Better Business Bureau (BBB) as in USA which stresses on customer care and its membership gives credibility and trust and incase of any complaints of non performance, late deliveries and any shortcomings of sub standard goods or inferior goods other than contracted goods is liable for compensation or replacement.
For the purpose of security and safety of SME units an SME Liaison Committee (SME-LC) is required like the Citizen Police Liaison Committee (CPLC). Also the setting up of the office of SME Ombudsman which was promised by the government has not been fulfilled.
Most important of all is that SMEDA which can play a key role in the SME promotion and development is not strengthened by personnel, funds and direction and its agenda remains unaccomplished. It would be wise to place it directly under the cabinet division for focused attention.

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