Ayesha Mudassar

A Planning Commission member has emphasised the need to follow the Chinese methodology for development of small and medium enterprises (SMEs) in Pakistan. Speaking at a seminar on ‘study of existing income tax regime for SMEs’ organised by the Small and Medium Enterprises Development Authority (SMEDA), Asim Saeed pointed out that reduction in taxes, simplification of administrative licensing procedures and commercial registration system had made notable contributions to China's economic progress. “These reforms have expanded China’s domestic demand, stabilised prices of raw material, improved the confidence of market players and enhanced exports,” he added.

Addressing the seminar, Parliamentary Secretary for Industries and Production Dr Syeda Shahida Rehmani said SMEs were playing a vital role in the local economy, contributing significantly to the country's GDP and employment. She stressed the need to realise SMEs’ full potential by providing supportive measures. President of Lahore Chamber of Commerce and Industry (LCCI) Kashif Anwar said that SMEs were a noteworthy driver of employment, poverty alleviation, sustainable industrialisation, and economic promotion across the world. “Taking cues from China’s achievements, Pakistan should gradually reduce import tariffs, simplify customs procedures, embrace technology, and focus on aligning its standards with international norms,” the LCCI president said.

On the occasion, Farhan Aziz Khawaja, Chief Executive Officer of Smeda, said SMEs were an important source of economic activity. “However, these enterprises are facing a range of challenges such as lack of capital, loans with high-interest rates, unavailability of modern technology and low investment opportunities.”  Sharing major issues of SMEs, former member of Policy Federal Board of Revenue Hamid Ateeq Sarwar said there was a strong need to address the concerns of SMEs through targeted incentives, prudent trade policies, and public-private partnerships. “By nurturing these enterprises, a strong foundation for sustainable economic growth can be laid down.”

Credit: Independent News Pakistan-WealthPk