Lahore:The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the Small and Medium Enterprises Development Authority (SMEDA) to the need to highlight the issues facing the sector at the 3rd SME conference scheduled for 27 November at Lahore to acquaint the policymakers with the hardships faced by the sector.
President UNISAME Zulfikar Thaver in a message to chief guest Abdul Razzak Dawood adviser to the Prime Minister (PM) on industry, commerce and economic affairs has stated that the majority sector expects positive and prompt remedial measures from the government and the going to do style needs to be replaced with fast work. First of all the SME sector needs priority by virtue of it being the majority sector, the engine of growth, the vehicle for employment, the back forte of the large enterprises and undoubtedly the tool for poverty alleviation.
The sector needs to be facilitated with access to finance at affordable rate, uninterrupted energy, reduction of duties on raw material, technical and marketing support and land at concession on deferred payment terms. The sector deserves the best attention of the government being the backbone of the economy.
Thaver said just like the export refinance scheme, a scheme is urgently needed for SMEs as it is anticipated that mark up rates are most likely to be increased in the forthcoming monetary policy which will make finance unaffordable for SMEs. The sector also needs concessional finance to set up renewable energy systems. To reduce cost of production and become competitive it needs reduction of duties on raw material and packing material.
For technical support it needs an SME institute for training, modernization and product upgradation to match international standards. To enter global markets it desperately needs an export promotion bureau for its wares to be exhibited and marketed in international markets, especially nontraditional markets and nontraditional goods. To make the banks comfortable an export credit guarantee scheme is the need of the hour. It is pertinent to note that the scheme is based on low premium and open for third world countries, where the SMEs can penetrate and also regain lost markets.
The SMEs need to be facilitated, supported, encouraged, a three-prong tool will change the destiny of Pakistan as it is the SMEs who add value to the produce items and will enhance exports of textiles, leather, foodstuffs. light engineering, cutlery, surgical, sports goods and general merchandise.
Thaver emphasized the need to promote our geographical indication (GI) items such as basmati rice, kinoo, mangoes, methi, handicrafts, multani halwa, dandicut chillies and others. The proposed SME promotion bureau could be entrusted to do this job.
The Union also desires that SMEDA should be strengthened and its size and scope be increased to outreach the enterprises and also the SME farmers. Secondly it urged to place SMEDA under the cabinet division for direct attention of the PM. In all other countries of the world there is a separate ministry for the under privileged sector but since a separate ministry will entail extra expenses it is best to place it under the cabinet division.
Thirdly SMEDA must register all SMEs and have a survey province wise, industry wise and accordingly make a directory for the stakeholders.
Needless to state that an SME specific bank is required and also early functioning of the Exim Bank to put things in good gear.
The UNISAME delegation at the 3rd SME Conference will advocate the cause of the sector and invite the kind attention of the experts, the policy makers and the advisers to the special and urgent need for SME friendly policies of one window, tax incentives, transfer of technology and fast track SME promotion and development.