UNISAME urges swift SME reforms in budget proposals

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the government to take immediate and practical steps to uplift the SME sector and submitted a list of actionable proposals to Special Assistant to the Prime Minister (SAPM) Haroon Akhtar.

In a statement issued on Wednesday, UNISAME President Zulfikar Thaver said the organisation has called on the SAPM to personally take up the matter with the prime minister. He emphasised that it is crucial for the upcoming budget to address the pressing needs of the SME sector.

“The government must introduce SME-friendly taxation policies, simplify business procedures, reduce production costs and ensure the availability of affordable financing. It should also extend technical and marketing support,” Thaver said. “If these issues are ignored once again, the sector may face serious setbacks.”

He lamented that despite repeated promises the sector has yet to witness concrete actions. “It is high time that solid, swift measures were taken to resolve longstanding challenges,” he stressed.

Thaver outlined key proposals, including the creation of a broad global digital portal for SMEs to display their products without delays. He also highlighted the urgent need for a technical institute to bridge the technological gap, warning that SMEs risk becoming obsolete due to the rapid advancement of artificial intelligence (AI).

Additionally, he called for the establishment of a protectorate body to advocate for SME rights, raise awareness and prevent bureaucratic high-handedness. Thaver also proposed the formation of a large-scale leasing company based on a ‘Pay as You Earn’ model to support SME operations.

“These steps are not only overdue but essential to counter the mounting challenges faced by the sector,” he added.

UNISAME council members also pressed for a revision of income tax rates, pointing out that SMEs in most parts of the world do not pay more than 25 per cent in taxes.

“In Pakistan, SME exporters are forced to pay 29 per cent, while others pay up to 40 per cent. This is unjust and unsustainable for a sector already under pressure,” the statement noted.