UNISAME URGES PM TO EXPEDITE REFORMS

The Union of Small and Medium Enterprises (UNISAME) whilst appreciating keen interest of prime minister (PM) Shehbaz Sharif in introducing reforms in all spheres ranging from regulatory, promotional, economics to social welfare has urged him to expedite matters in order not to lose opportunities.
President UNISAME Zulfikar Thaver said the Union appreciates his keen interest in the SME sector which is now under his direct supervision and control and also his frequent meetings with the officials of the Small and Medium Enterprises Development Authority (SMEDA) and also few meetings with foreign consultants appointed by him.
Thaver pointed out that these meetings are simply reviewing the proposals of different national and international institutions and UNISAME given time and again but what is required is decision and action.
UNISAME Council (UC) have again reiterated high impact policies for the promotion of the majority sector by facilitating, supporting, helping, motivating and stimulating the sector on all fronts from financing, educating, strengthening the supply chain, making energy and alternate energy affordable and accessible.
The UC has complained that the entrepreneurs who made investments to install solar systems have not gained much as the electricity supply companies are buying electricity supplied to the grid at a very low price and selling the same energy at several times higher price. This is perhaps done to discourage installing solar systems.
They also expressed grievances regarding allowing import of secondhand vehicles when the vehicle assemblers are not using their full capacity and are keeping their manufacturing units closed at intervals.
Due to this the SME auto parts manufacturers are also suffering due to decreased sales.
Another important point worthy of consideration is that the government has increased taxes and is taking pride in the fact that inflation has come down but ignoring the fact that the inflation wave over a period of time has inflated the prices so high that a reduction in the rate of inflation is of not much consequences.
The austerity drive, the downsizing and closure of institutions is needed but will prove its worth when done with earnestness. What is really needed is efficiency and diligence.
Regarding exports, the UC has time and again requested for an exclusive desk in the Trade Development Authority of Pakistan (TDAP) for targeted promotion of SME wares and our geographical indications (GI) goods.
This can be achieved by an SME Global Gallery displaying the manufactured and processed goods and Commodities supported by a portal wherein global buyers and SME sellers could post their offers and inquiries.
Another high impact financial support could be a scheme by the State Bank of Pakistan (SBP) whereby the SMEs could borrow money for commercial property, raw material,bridge finance for procurement and repay as they earn.
UNISAME fails to understand why the Exim Bank is not getting into gear and the much needed credit guarantee insurance scheme has not been granted a matching limit for reinsurance.
Thaver concluded at the meeting that all deliberations and dialogues and advice of consultants would be futile if what is really required is not done promptly for the fast track promotion and development of the sector.

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