Ministry urged to arrange funds for raw materials import

KARACHI: The Union of Small and Medium Enterprises (Unisame) has invited the attention of Small and Medium Enterprises Development Authority (Smeda) Chief Executive Officer (CEO) Farhan Aziz Khwaja towards the poor conditions of the Small and Medium Enterprises (SMEs), as the majority of them are have been badly affected due to unavailability of the foreign currency for imports, a statement said.

The imports and exports are like warp and weft to an economy and interdependent. The SME units are facing predicament owing to the restrictions on the import of raw and packing materials, he added.

The economy is collapsing and the industries are shutting down, resulting in unemployment and unavailability of goods.

The Unisame Council said that all the segments are affected and such a situation demands immediate release of suppliers credit through global sources.

Unisame President Zulfikar Thaver said that it is indeed shocking to witness that the government has not taken measures on war footings to ensure that the basic essential raw and packing materials could be imported and funds should be arranged accordingly.

The government has to arrange funds for the suppliers’ credit and there are no two opinions about it. The suppliers’ credit has to be arranged by mortgaging state assets with the international investment companies till the International Monetary Fund (IMF) help is available to enable the industries to get their imported goods.

The daily requirements of the consumers, such as food, clothing, shelter, medicines and fuel are a must and under no circumstances be avoided.

The question is why the government is not arranging for imports under suppliers’ credit and not issuing sovereign guarantee and mortgaging property to the international funding institutions, as it is obvious that the goods will need to be imported.

The Unisame Council has urged the Smeda CEO to impress upon the Ministry of Industries and Production to act promptly and arrange funds for the import of raw and packing materials and save the economy from collapse.

It said the SME sector is the backbone and if this sector is crippled due to unavailability of input and materials, it will witness unimaginable disaster.

It is indeed strange that there has been no planning to curtail the adverse situation, it added.

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