Incentives sought for troubled SME

Businessmen demand cut in fuel prices, policy rate

LAHORE: Businessmen have urged the government to take concrete steps in a bid to keep the industrial wheel running, especially of the small and medium-sized enterprises (SMEs), to save livelihoods of millions of workers.

In a statement on Monday, All Pakistan Business Forum (APBF) President Syed Maaz Mahmood pointed out that in order to save the economy from the impact of slowdown caused by the COVID-19, the government should announce special incentives for the cash-strapped SMEs. “SMEs represent over 90% of around 3.2 million business enterprises in Pakistan and contribute 40% to the gross domestic product (GDP),” he said. “They employ more than 80% of non-agricultural workforce and generate 25% of export earnings.”

He highlighted that mere statements would not work unless solid measures were taken by the government including a sizeable reduction in fuel prices, major cut in the key policy rate, regionally competitive energy tariffs, quick tax refund payments and relaxation in duties and taxes. He lamented that Pakistan’s SMEs were experiencing declining demand from overseas markets and were also facing hurdles to meeting existing orders, adding that the real problem was the high cost of production and a long list of duties and taxes. “The government should prioritise the SME sector by reducing taxes to strengthen the overall economy,” he stressed.

Published in The Express Tribune, March 24^th, 2020.

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