Small and medium enterprises playing crucial role in economic uplift: Waqar Mian
LAHORE: There is an urgent need to reduce taxes and duties on alternate energy solutions for SMEs. The small and medium enterprises playing crucial role in economic development and are given a special treatment in all countries. But in our case they have not been given the importance they deserve.
These views were expressed by Anjuman-e-Tajran Auto Parts Badami Bagh and farmer LCCI executive member Waqar Ahmad Mian while talking to Customs Today here the other day
Mian said that it is universally recognized that the SME sector have a vital role in economic growth, employment generation and poverty reduction in the country. However, despite economic significance of SMEs, they have been unable to receive their due share from formal source of financing which hampers the development of SME sector, he said, adding the government should decide to provide financial access to of small and medium enterprises (SMEs) in the country.
“At the same time, we need to create a supportive regulatory environment to optimize productivity through technological and financial access, “he stated.
He underlined the need for tangible measures to modernize infrastructure, banking, leasing, insurance and logistics to build capacity. He also highlighted the need to reduce taxes and duties on alternate energy solutions for SMEs.
He said in this context it is important that following the example of other countries, we set up new well equipped and specialized industrial estates for the promotion of SMEs.
Research and development activities should also be undertaken on a large scale to set new directions of growth and promote transfer of new technologies among SMEs, Mian said, adding that keeping in view the potential of SMEs in Pakistan and to promote SME finance in the country, the government should introduced targets for SME finance for banks/DFIs and targets be set on the basis of size of banks in terms of assets, branch network, existing SME finance portfolio and the capacity of banks to achieve the required target.
He further explained that the SME financing targets should be assigned to banks/DFIs and monitored through monthly and quarterly quantitative and qualitative reporting.
He commending the government vision of extending SME credit outreach to 300,000 SMEs by of by end of 2020 SME said that such measure can prove live wire for SME sector.
He added that the number of SME borrowers should be increased by 2020 and the proportion of SME lending to total bank credit to the private sector should also be increased.
Further, banks should be advised to take some special measures which will facilitate in enhancing SME credit, he said, concluding SME financing setup should be separated from commercial financing departments or divisions in order to focus more on SME financing.
