ISLAMABAD: The local business community has urged Federal Finance Minister Ishaq Dar to consider their proposals for putting the economy on the right track through SME-friendly policies.
In a statement, Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver said the SME sector constituted a major chunk of the country’s economy, and unless the policy makers focused on the primary, secondary and the services sectors, the economy would not grow. “The government cannot afford to neglect the micro and SME sectors,” he opined.
Thaver also stressed the need for adopting modern banking, leasing, insurance and logistics. “UNISAME has submitted long and short-term measures for making the SMEs competitive, efficient and growth-oriented,” he said.
He appreciated the efforts of the State Bank of Pakistan (SBP) for making financing affordable, but regretted that it was not accessible. “To make it accessible, the sector needs SME specific bank with countrywide branches.
The UNISAME president also asked the commercial banks to take interest in the SME sector, too. “The commercial banks are inclined to fund the public-sector enterprises, but not the private-sector ones,” he complained.
Underscoring the need for providing an enabling environment to banks for financing the SMEs, Thaver said SME Credit Guarantee Insurance institutions needed to be strengthened.
“The sector is awaiting the much talked about and much promised Exim Bank, and the UNISAME has urged the SBP to expedite the process of its establishment so that international trade could be facilitated,” UNISAME president added.
Thaver said the banks were not interested in financing exports to the third world countries and letter of credits (L/C) of opening banks of low ratings. He deplored that small entrepreneurs were not accommodated by the commercial banks, and it was, therefore, proposed to enhance the credit limits of the micro finance banks from Rs 500,000 to Rs 1 million.
