SMEs call for cut in interest rate

KARACHI: There is a need to reduce the cost of doing business for micro- and medium-sized businesses as micro finance banks are charging high markups, an industry leader said. 

“Value addition need to be facilitated with an access to finance, uninterrupted energy supply, trade intelligence, technical and marketing support and logistics,” said Zulfikar Thaver, president of the Union of Small and Medium Enterprises (UNISAME). 

Thaver said the SME Bank must be revived and Exim Bank must begin functioning to facilitate the sector.

He said geographical indication (GI) protection draft needs a prompt approval from the cabinet. 

“Most of the GI items are produced and processed for value addition by the SMEs,” he added.

President UNISAM said there is a need to promote the import substitution items to cut the import bills.

He said the Small and Medium Enterprises Development Authority (SMEDA) needs to conduct a survey to understand the size of micro, small and medium sector in the country.  

“It is very important that the stakeholders know the exact size of the sector to make planning for its development,” he said. “SMEDA needs to be strengthened and put under the cabinet division for direct and prompt actions and to save unnecessary exercise of going through the ministry of industries.” 

All over the world, the SME promotion and development institutions work directly under the chief executive of the country.

UNISAME urged the ministry of planning and reforms to include the micro sector in the agenda for discussion at the upcoming roundtable conference on small and medium enterprises on 17 October.