Unisame urges PM to explore SMEs potential

KARACHI: The Union of Small and Medium Enterprises (Unisame) has invited the attention of Prime Minister Shehbaz Sharif that the Small and Medium Enterprises (SMEs) are the destiny of Pakistan and can bring about a betterment in the economy and must be facilitated, supported and encouraged in such challenging times, a statement said on Saturday.

Unisame President Zulfikar Thaver said: “We have reiterated that the only sector, which can bring about a remarkable change in the badly-hit economy is the SME sector, as this sector is facing setbacks because of the rupee depreciation, inflation and unavailability of funds for imports of raw and packing materials, logistics, medicines and fuel.

However, the majority sector is ready to face challenges and are prepared to continue to manufacture the requirements of domestic and foreign markets made mostly from the indigenous resources.
Thaver said that the SME sector is demanding a facility for the import of a small percentage of items they need to import to complete their production cycle due to unavailability of specific components and parts or ingredients, which are needed to be imported.

The Unisame Council members have; therefore, urged the government not to stop import of such items, as the entire production will not move unless such items are made available.

The council has urged the State Bank of Pakistan (SBP) to contact the international support funds or donor agencies to finance or invest in the imports or seek support from the international commodities exporters on pay as you earn schemes or give 367-day credit for the payment of bills of exchange.

Another option could also be to allow the overseas Pakistanis to import with their own funds from abroad and take the value back after a determined period of time.

The Unisame Council also suggested measures to pump up dollars to the SBP, including giving a sizeable rebate on the workers’ remittances up to a specific threshold for short-term.
The Pakistan Remittance Initiative (PRI) Scheme of the SBP can be expanded for it. Also evaluate a separate interbank rate for the workers’ remittances to encourage direct flows.

The steps already taken by the government to increase the profit rates on the foreign currency accounts and other saving schemes of foreign residents are appreciated and hopefully increase savings in Pakistan, it added.