Small and medium enterprises (SMEs) in Pakistan can be made more productive by providing them with special incentives. A better approach to access sources, capacity building, and better opportunities for connectivity can make them more productive. Discussing with WealthPK the importance of special packages, Coordinator at Small and Medium Enterprises Development Authority (SMEDA), Rawalpindi Muhammad Asghar said, “SMEs are the engines of economic growth. Large industrial units remain limited to specific areas but SMEs are working across the country deserving special packages in the form of incentives, tax relaxation, free training, and provision of equipment, grants and easy loans.” Talking to WealthPK, Senior Vice President of Islamabad Chamber of Commerce and Industry (ICCI) Faad Waheed said, “SMEs are a source of sustainable livelihood but in the obtaining situation their survival is at stake.

The reason is high prices of raw materials, inflated power tariffs, costly fuel, and a lot of additional taxes. If SMEs and start-ups scale up their business, work opportunities will increase. Besides, they need coaching to learn the business tactics. It is equally important to bring awareness among them to present their products at international platforms.” Faad said in the global business environment, networking was key to the development of SMEs. Their connections with other entrepreneurs, investors, and industry experts are necessary to find new opportunities, develop new products/services, and adopt new technologies for better growth. Speaking to WealthPK, former senior vice president of ICCI Jamshed Akhtar Sheikh said in the new industrial policy, development of SMEs must be a priority. Their empowerment will help the industrial sector grow rapidly. SMEs act as a backbone in the socio-economic development of a country.

These business institutions play a vital role in creating new work and business opportunities, alleviating poverty, and increasing innovation. It is important to consider their role whenever the policies are framed. He said it was necessary to establish a strong industrial advisory body to emphasize the development and role of SMEs in progressive policymaking. All these decisions will bear fruit in future in shape of better economic growth and prosperity. It is important to provide them with flexible loans at low interest rates. Another important task is to build their capacity and provide them with better technology, and uninterrupted electric supply at low rates. Jamshed said market access was also a problem and emphasized that the government must play a vital role in ensuring easy access of SMEs to the markets at both national and international levels. To make their products qualitative, necessary training must be planned. Ease in export terms will also spur their growth. Another problem is that there is no proper system in place to regulate them. To manage their issues, a single window system can be introduced.

Credit: Independent News Pakistan (INP)