Early implementation of SME policy demanded

Prime minister has sought roadmap for policy implementation

The small and medium enterprise (SME) sector has demanded early implementation of the SME policy, which has been framed to develop the sector on a fast-track basis.

After a long time, the National Coordination Committee for SMEs presented an SME policy to the prime minister and it appeared that the policy was proposed without a roadmap for implementation, said Union of Small and Medium Enterprises (Unisame) President Zulfikar Thaver.

Prime Minister Imran Khan has now sought the roadmap for implementation of the policy. “The sector is disheartened by unfulfilled promises of the government,” said Thaver in a statement. “First the pandemic, then floods and now inflation has significantly increased the cost of doing business as well as the cost of production.”

Since the government “has increased electricity rates, SMEs are compelled to shut down,” he said.

Thaver pointed out that gas charges were increasing as well while small-scale farmers were in a turmoil following devastating floods, which destroyed the standing crops.

He voiced hope that the SME policy would be comprehensive as it was direly needed to identify requirements of the sector.

“It has been a long time since the policy was sent to the Prime Minister’s House,” said Pakistan Weaving Mills Association Chairman Yousuf Yaqoob. “Since the policy has been presented, the economic situation of the country has changed drastically.” He added that the government needed to issue the policy as soon as possible keeping in view the present economic realities such as the rupee-dollar parity, inflation and interest rate.

The last SME policy was formulated in 2007, which remained unimplemented, he recalled. During Pervez Musharraf’s government, the rupee was priced at Rs65 against the US dollar, which has now weakened to Rs160, said Yaqoob. “If the new policy keeps the same definition of SME as in 2007, ie a company worth below Rs800 million, it will not be a practical decision for the country,” he said.

Published in The Express Tribune, October 15^th, 2020.

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