Small & Medium Enterprises are backbone of the economy and their role is crucial for economic development of the country. Ongoing scenario demands special attention of the government towards SMEs.
These views were expressed by the LCCI President Irfan Iqbal Sheikh while talking to Chief Executive Officer of Small & Medium Enterprises Development Authority (SMEDA) Hashim Raza at SMEDA office.
The LCCI President suggested that those SMEs should be given soft loans of Rs. 1 million with deferred payments that have received utility bills of Rs. 1 lac or above.
Irfan Iqbal Sheikh said that a good workable short-term policy should be evolved for the Small & Medium Enterprises that can enable them to face the challenges posed in the context of coronavirus.
He said that the economic revival of the country would remain a dream until and unless the government redesigns its policies and divert resources towards SME sector.
The LCCI President cited the example of China, Korea and United States where an equal importance is being given to the small business. They are treated at par with Large Scale Manufacturing sector.
Irfan Iqbal Sheikh further stated that SMEs hold paramount importance in the Pakistan’s economy. Other than preparing roadmap, there is a need to develop a market for SMEs intermediary services where SMEs, on nominal payment, can acquire the services such as technical know-how, marketing, managerial skills, accounting, book keeping and preparation of basic financial statements. This will improve the bank-ability of the credit proposals of SMEs and their requests for fixed capital as well as working capital.
The LCCI President said that by way of improving the capacity and disseminating important information among the relevant stakeholders, we can ensure better results. He said State Bank of Pakistan for preparing a Roadmap for Promotion of SME Banking and in this connection their experts have visited here to brief us about one of the pillars of this roadmap which is Capacity Building & Awareness Creation.
Irfan Iqbal Sheikh said that State Bank of Pakistan should also ensure easy borrowing for the Small and Medium Enterprises so that they can spread their operation and play their role for employment and revenue generation.