KARACHI: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman said on Wednesday that small and medium enterprises (SMEs) are the backbone of the economy but unfortunately this sector had been ignored and neglected and no importance had been given for the promotion of SMEs in the country.
He said this while speaking at SME Senate – The Business Development Conference held here at FPCCI House in collaboration with Commissioner Karachi Office & Mass Human Resources Services.
The conference was also attended by Commissioner Karachi Shoaib Siddiqui, Senior Vice President FPCCI Shaukat Ahmed, Senator Abdul Haseeb Khan, Dr Mirza Ikhtiar Baig and business leader Tariq Sayeed.
The President FPCCI emphasized the need of poly-technique institutions and said: “We need technicians so that the major part of our population which consists of youth can be made skilled to enable them to work as SMEs with financial help from banks.”
He said that State Bank of Pakistan should instruct the commercial banks to allocate separate funds for SMEs for their financial assistance. He warned that if we failed to gainfully utilize the capabilities of youth then any other else could utilize them for their ulterior motives.
Usman suggested that the government should make Commissions for the promotion of SMEs in all provinces which should include the officials of State Bank and other leading commercial banks and SMEs Bank along with other members from private and public sectors.
He further suggested that before bringing the SMEs into the revenue net of the government, they should be facilitated in terms of finance, infrastructure and security because the fearful atmosphere of taxes, duties and inspections by the authorities none of SMEs can survive in the country.
The commissioner Karachi said that SMEs were the important factor of the economic circle which provides basis for industrialization and mass production. He further said that SMEs could play pivotal role in the development of trade and economic activities and besides this most of the problems in the social sectors could be addressed by promotion of SMEs.
Dr Baig said that the SBP had already devised separate Prudential Regulations for SMEs through which SMEs could get finance from commercial banks on their cash flow basis.
He regretted that the commercial banks refrain from advancing fund to SMEs under the prudential regulation of SMEs. He stressed on the immediate implementation of the said rules and issuance of necessary instructions to commercial banks to arrange separate funds for SMEs so that their financial problems could be resolved.