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Home » Business News, General Business News

Razzak Dawood to steer revision of SME Policy on Modern Lines

December 3, 2018

Karachi, December 03, 2018 (PPI-OT): The Steering Committee constituted by the Ministry of Industries and Production (MoI and P) is scheduled to meet in Islamabad on 4th December under the chairmanship of Abdul Razzak Dawood adviser to the Prime Minister (PM) Imran Khan for necessary revision of SME policy 2007.

The chief executive officer (CEO) of the Small and Medium Enterprises Development Authority (SMEDA) has invited the secretaries of the different ministries, Deputy governor State Bank of Pakistan, presidents of major chambers of commerce and industry also the Federation of Chamber of Commerce and Industry and President of Union of Small and Medium Enterprises (UNISAME) for a brain storming session to revisit and revise the SME policy 2007 to make it comprehensive and in line with modern concepts.

The SMES being badly affected have invited the attention of Zulfikar Thaver president of the Union of Small and Medium Enterprises (UNISAME) to remind the government of its commitment to the sector both before and after elections and urged that the very necessary steps be taken urgently.

They said meetings and discussions and also promises are being made but no positive high impact steps have been taken. With the depreciation of rupee, the imported raw materials have become very costly and cost of production has made the SME units non-competitive. This is a serious matter and import duties on raw and packing material having no substitute in Pakistan be exempted from duties immediately.

Thaver regretted that SMEDA is without sufficient personnel and funds. It needs to be strengthened to outreach the SMEs all over Pakistan. Secondly the sector needs global marketing support for which a separate SME promotion export bureau is needed without loss of time.

Thirdly a low premium export credit guarantee scheme is needed urgently to make banks comfortable in financing SMEs. Fourthly for technical support an SME institute is essential to enable the units to modernize by adopting latest techniques of production, management, accounting, transfer of technology and training in customer care, product up gradation and international bench marks.

Unless the right steps are taken without loss of time the exports will not pick up. The country cannot afford to wait for exports to pick up, the economic managers have to make this happen. Jump start is required and apparently it seems the ministries are not in the emergency mode. They need to declare export emergency and the Trade Development Authority of Pakistan (TDAP) needs to work overtime with a definite strategic scientific approach. Specific industry wise homework is the need of the hour and correct remedial measures for each of the exporting sectors be given to boost exports.

Needless to state that the SME units need access to finance at affordable rates and finance facilities under ‘ pay as you earn schemes’ for purchase of land, offices, workshops, warehouses and factories. The much talked about commercial property leasing facility is not available.

UNISAME also lamented that the SMEs engaged in rice sector expected that the government would include rice sector in 0 rating being export oriented sector and also declare it as an industry but were disappointed that the pending matter was not taken up in the Economic Co-ordination Committee (ECC) meeting held recently.

Thaver said time and again the union has raised these issues with the previous government which fell on deaf ears but the union expected prompt remedial measures from the new government. UNISAME is confident the PM, the finance minister Asad Umar and Abdul Razzak Dawood adviser to PM will look into the matter and take steps on war footings and save the SME units from closure.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307

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