The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday demanded of the government to formulate a new and modern policy to boost the important sector of Small and Medium Enterprises (SMEs).
It also asked the government to appoint a competent and well-versed Chief Executive Officer of Small and Medium Enterprises Development Authority (SMEDA) as this important slot is lying vacant for long.
Talking to the business community, former Vice President of FPCCI Sheikh Mohammed Ali said that delay in appointment of CEO SMEDA is resulting in problems, therefore, it should not be delayed anymore.
He said that it is evident from the experience of developing countries in the east of the world such as Singapore, Malaysia etc., that the drivers of growth were only small and medium enterprises.
SMEs have a share of fifty to sixty percent in some countries yet this sector is considered the backbone of a country’s economy while the share of SMEs in Pakistan’s economy is over ninety percent which deserves proper attention, he added.
Sheikh Mohammed Ali noted that the Pakistani economy is SMEs-based as over 90 percent of the 3.2 million enterprises fall under the category of SMEs.
He noted that presently many SMEs are borrowing more from banks despite a big rise in interest rates but they are pumping additional funds into their operations just to stay afloat and not for capacity enhancement.
On the other hand, access to banking credit remains a major factor for many SMEs hampering the growth of this critical sector, he observed.