Investment in the village-based small and medium enterprises (SMEs) is the need of the hour to develop the rural areas and bring them on a par with the developed areas. Besides agriculture, they act as the primary engine for a sustainable income, said Faad Waheed, Senior Vice President of the Islamabad Chamber of Commerce and Industry (ICCI) while speaking to WealthPK. “Encouraging entrepreneurs or SMEs, especially in the rural areas, accelerates trade and business innovation, better infrastructure development, and diversification in the economic base. A great part of our non-agricultural labour force is employed in the SME sector. “The SMEs significantly contribute to poverty alleviation and socio-economic prosperity. From a local manufacturer to a supplier and buyer, a whole chain of local trade and business net is involved in it. Usually, they play an active role at all levels to accelerate economic activities. They may be categorized as supporting, export-oriented, cottage, or domestic industries,” he said.

Other than investment in the rural SMEs, some other aspects like special tax compensations, low-interest bank loans, availability of low-cost equipment, training sessions arranged by the government to bring awareness about the new value addition modes, packaging, marketing, and online assistance related to all active SME tasks also need to be focused on, said the ICCI senior vice president. According to Faad, rural agribusiness-based products are a vital part of all trade-related aspects including the export and import segments. A good investment in rural SMEs can help make quality value added products and save the precious foreign exchange wasted on import of such products. “More business opportunities in rural areas lead to better education, health, and sanitation besides income generation. Another important factor of this development is better resource utilization available in those areas – agri products, dairy items, livestock rearing, conversion of by-products into profitable goods, and local handicrafts.

“The role of the chambers of commerce across Pakistan is important for developing the SMEs, especially those in the rural areas. With the government’s help, they can ensure the weaving of an efficient policy framework to apply for long-term programs. They must be given access to participate in regular business promotion events, which will encourage them to present their products at both national and international levels. The ICCI is actively working in this regard and is determined to put more effort into highlighting the importance of this issue,” added Faad. The SMEs contribute 40% to the GDP and over 25% to the overall exports. In addition, horticulture and livestock account for 70% of national value-added agri products. Most of the developing countries like China have focused on strengthening SMEs to make their economies strong. The policymakers in Pakistan must also focus on it and offer good incentives to attract investors toward rural SMEs.

Credit: Independent News Pakistan (INP)