The Union of Small and Medium Enterprises (UNISAME) has submitted road map to the prime minister (PM) Mian Nawaz Sharif and urged him to ensure that the budget making committee does not over look the crucial requirements of the majority sector which is the engine of growth and the backbone of the economy.
President UNISAME Zulfikar Thaver said UNISAME is a sponsoredĀ forum entrusted with the task to create awareness of the rights of the SMEs, to identify impediments in SME growth, to recommend remedies and help the government in policy making. UNISAME has given road map to the policy makers for the uplift of the sector on fast track basis.
He said the budget should aim at facilitating the micro, small to medium sized sector by providing them finance at affordable mark up from commercial banks and financial institutions according to their needs. The government must strengthen the banks, financial institutions, leasing, insurance and joint venture companies as these are the pillars of the economy. The SME Bank must be enabled to cater to the financial requirements of the sector.
Since the SME sector is the vibrant sector, backbone of the economy, the engine of growth and the vehicle for poverty alleviation and best for creating employment it is imperative that it is not neglected and given priority.
The government knows fully well that there are almost 10 millions SMEs in Pakistan and in addition to this there are equal number of SME farmers and although this sector is referred to as the SME it is the majority sector capable of growth and stimulating the economy.
The SMEs contribute to 35% of the exports and most of them are involved in value addition and they contribute 40% to GDP and offer employment to about 45% of the labour force.
The impediments to SME growth are lack of education, finance, proper environment, infrastructure, logistics and these days the law and order and energy crisis are real issues. The budget must make provision for the redress in the budget
In order to promote, encourage, facilitate, motivate and upgrade the SME sector UNISAME have suggested to the government to educate the SMEs about the new technologies in production, management, marketing, accounting & inventory control and encourage the SMEs to modernize and make plans for balancing and replacement of their units and arrange transfer of technology. The above is not an easy task and for this the government should strengthen and equip the Small and Medium Enterprises Development Authority (SMEDA) and broaden its scope to enable it to reach the SMEs involved in manufacturing, farming trading and services.
Posted in: Press Releases
Comments are closed.