Innovation fund being set up for small units

Govt working to offer soft loans, cheap electricity

KARACHI: The government is working to set up Pakistan Innovation Fund in an effort to support micro, small and medium-sized enterprises (MSME) for upgrading different segments of farming, fishing, livestock, poultry, dairy and agro-based industries.

The federal government is working with various organisations including the Small and Medium Enterprises Development Authority (Smeda) to facilitate micro-businesses by offering soft loans and providing them with cheap electricity, according to a high-ranking official of Smeda. The Union of Small and Medium Enterprises (Unisame) has appreciated the government's strategy to set up Pakistan Innovation Fund for small businesses.

"It is indeed a wise decision by policymakers to promote, support, facilitate and help the MSME sector to keep wheels of economy running during the current crucial time when business activities have come to a virtual halt," said Unisame President Zulfikar Thaver.

According to him, MSMEs are fighting for survival and require government support to keep themselves operational.

He was of the view that motivation and support from the government could do wonders for the small business segment which, in turn, would bring improvement in the battered economy.

He added that the Ministry of Science and Technology and Pakistan Credit Guarantee Company would join hands to spearhead the strategy of upgrading, modernisation, balancing and replacement of targeted areas.

The first sector to be upgraded should be farming because hydroponic farming had become the need of the hour due to the impact of climate change on the country, emphasised Thaver.

"MSME farmers need to be educated about benefits of hydroponic farming," he said. "It should be introduced as a parallel system first and once the farmers learn how to use it, they will adopt it easily."

Hydroponic farming can fill all gaps and guarantee regular supplies from greenhouses to markets. He stressed the need for tapping all seafood resources and modernising the fishing industry. "Most of the fishing trawlers are outdated and the country needs to upgrade them with onboard refrigeration and deep-sea fishing equipment," he said.

Thirdly, the sheep breeding industry had been neglected and did not get the attention it deserved, said Thaver. Farmers could be encouraged for sheep breeding as a parallel to crop farming and they should be provided with the best veterinary care and educated about the food and its nutritional values for rapid growth.

Published in The Express Tribune, May 16^th, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.