UNISAME URGES DR SHAHID AMJAD ADVISER TO PM ON FINANCE TO RECOMMEND REMEDIES

The Union of Small and Medium Enterprises (UNISAME) invited the attention of Dr Shahid Amjad Chaudhry adviser to the prime minister on finance that the past coalition government did not implement the SME policy nor aligned the industrial and trade policy and budget to strengthen the economy on scientific lines nor addressed the major economic issues of inflation, increasing deficit financing and depreciation of the rupee on the basis of recognized economic formulas.

The union has urged Dr Shahid Amjad to prepare an urgent list of required economic remedies for the expected new government to enable them comprehend the real actual factual economic situation and to overcome it sensibly in light of the suggested remedies advocated by the caretaker set up.

The union is now anxiously looking forward to the changes that will be made by expert economist in the policies when the new elected government takes charge and hopes measures will be taken to boost exports of value added goods, promote new and innovative goods industries, import substitution industries and balancing, modernization and replacement (BMR) of existing units with the establishment of industrial estates in all the provinces.

President UNISAME Zulfikar Thaver said the past coalition government did not take strong measures to boost exports and nothing was done in the budget, the industrial policy or the trade policy for the SME sector which is the majority sector. The economy has been stagnating and no new industries are being set up. The capital is fleeing and the cost of production has increased due to depreciation of rupee. The country is importing everything from a pin to an elephant and the local industry is retarded.

The union has been demanding of the past coalition government to take steps to enhance exports, promote value addition of agri produce items and focus on facilitating the SME sector for setting up new industries.

The new government is expected to help the sector get rid of costly credit, heavy taxes, high transaction costs and delayed processing of loans and incentives, high input costs in a number of forms, and inadequate infrastructure. There is need to also lift the micro sector as recommended by the consultants to the United Nations Development Project (UNDP) from grass root level.

These are serious issues, and dedicated and positive steps are needed in this direction. The micro and SME sector needs a clear strategy both in short and long terms, without which little could be expected to be achieved no matter what temporary or superficial steps are taken to boost exports, trade and industry.

The union has approached the major political parties who are contesting the elections and requested them to acquaint themselves well with the serious issues and be prepared for prompt action in case of forming the government either as majority party or in coalition and not lack preparation as the issues will confront them from day one.

The union experts emphasized the need to educate the prospective policy makers in anticipation just like in U.K., U.S.A., Canada, Japan, Germany and other advanced countries where briefing on economic issues are given before election to all the contesting parties and actual facts and figures are placed before them by the federal secretaries to acquaint and prepare them to comprehend the ground realities.

The union urged the federal secretaries of finance, commerce and industries to do their homework and have a solid economic plan ready for prompt implementation for the new government to save precious national time and have ready road map.

Posted in: Press Releases