Islamabad, March 26, 2019 (PPI-OT):3rd meeting of the Standing Committee on Industries and Production of the National Assembly was held today i.e. 26th March, 2019 at 11:00 a.m., in Committee Room No. 7 (4th Floor), Parliament House Islamabad, under the chairmanship of Mr. Sajid Hussain Turi, MNA.
Chief Executive Officer (CEO) Small and Medium Enterprises Development Authority (SMEDA) briefed the Committee about the vision and mission of the authority. He informed that Federal Government has decided in 1998 to promote and development of SMEs across the country through activities of Encouraging and Facilitating Growth and Development of SMEs. He further expressed the mandate of SMEDA as per ordinance wherein, SMEDA was responsible for making policy and to provide over all planning relating to SMEs sector in Pakistan by protecting the interest of SMEs.
He added that SMEDA was also providing assistance for establishing association of persons, firm company, body or corporate concerning SMEs in Pakistan. He said that SMEDA was functioning according to its vision i.e. “Growth of Globally Competitive SME sector, through a conducive environment and support services, serving as an engine of sustainable growth for national economy”.He also explained the mission of SMEDA and operational strategies such as developing sectors, clusters and facilitation of service.
Mr. Abdul Razzak Dawood, Advisor to the Prime Minister/In-charge Ministry of Industries and Production informed the Committee that due to immense economic significance, SMEs in Pakistan were first recognized as a distinct segment at policy level, since the approval of the SME policy in 2007, various initiatives have been taken to promote SME growth in the country. However, rapidly changing business environment calls for a need to revise SME policy to bring the said sector in line with the global changes by setting objectives. He further informed that currently, National SME policy was under developing process, which will be presented before the Minister in-charge on 11th April, 2019. The Committee recommended that new SME policy may also be shared with the Committee on its finalization.
The Committee members have expressed their concern on the performance of the SMEDA, they were of the view that SMEDA should set its targets, while working on any project. They were also of the opinion that potential sector in the country should be identified before making feasibility. The Committee has shown its apprehension on the expenditures and outcome of the projects made by SMEDA.
The Committee recommended that SMEDA may be furnished a report on the achievements of their targets from June, 2017 to June, 2018 along with the details of business provided to women in furniture industry by the SMEDA. The Committee also recommended that details of the projects already initiated by the SMEDA in South Punjab (Multan, Rahim Yar Khan and Muzafargarh) along with the future strategy for southern Punjab may also be furnished to this Secretariat.
Managing Director, Utility Stores Corporation briefed the Committee about the infrastructure of USC. He informed that USC was established in 1971 as Private Limited Company under Companies Ordinance 1984, (now called companies Act, 2017). Its major functions were to protect the real income of the people by selling essential consumer items at prices lower than those prevailing in the open market and to act as a price moderator in the market and deterrent to profiteering, hoarding and black marketing. He also informed the Committee about the existing infrastructure including strength of employees. He said that USC was comprised 9 Zones, 65 regions, 130 warehouses and 3942 stores including 92 Franchises. He added that 5862, regular, 3835 contractual and 3403 daily wages employees were working in USC. He presented the breakup of USC network in different areas of the country. He briefed the Committee about the modern techniques proposed by the USC for its smooth and efficient working.
While, discussing the performance of USC, the Committee members were of the view that Government should provide subsidy for smooth working of the Corporation. Managing Director also briefed the Committee about year wise sales, subsidy provided by the Government, net profit loss and taxes paid by the Corporation.
The Managing Director, USC informed the Committee that USC was working on a contract with some Saudi Arabia businessman for obtaining funds up to Rupees 5 Billion on two years deferred payments basis, for improving the performance of Utility Stores Corporation. The MD, USC told the Committee about the grievances of employees, he said that Establishment Division has informed that the said matter may be decided by the USC at its own level, which may be decided in the Board of the USC, shortly.
The Committee recommended that inquiry report regarding supply of substandard Ghee to USC, (earlier) and other utility items, which were stopped at that time may be furnished to the Committee for its consideration. The Committee unanimously recommended that Mr. Mushtaq Ahmed, Senior Joint Secretary, Ministry of Industries and Production, currently holding look after charge of the post of MD, Utility Stores Corporation of Pakistan may be allowed to continue as Acting Chairman, USC till 30th June, 2019.
The meeting was attended by MNAs Mr. Nasir Khan Musa Zai, Syed Mobeen Ahmed, Mr. Aamir Talal Gopang, Mr. Muhammad Akram, Ms. Andleeb Abbas, Ms. Shandana Gulzar Khan, Ms. Sajid Begum, Ms. Aliya Hamza Malik, Mr. Usama Qadri, Mr, Ali Gohar Khan, Rana Muhammad Ishaq Khan, Mr. Riaz ul Haq, Syed Mustafa Mahmud, Mahar Irshad Ahmad Khan besides the senior officers of Ministry of Industries and Production.
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