KARACHI – Hanif Gohar Former SVP FPCCI, Former Chairman ABAD and Vice Chairman of Federal Core Committee UBG has suggested all the trade bodies of Pakistan to encourage their SME members to enhance their knowledge about the access to the organized markets, credit institution, formal education and relevant training in their specific sectors. The trade bodies may also help SMEs in business planning and help develop their skills in critical areas.
He said that Pakistan economy has had unprecedented challenges during the past two years due to COVID that has engulfed the economy of the world particularly of the developing countries. This pandemic also exposed the inadequacy of the health care system across the world. SME was the most badly affected sector of Pakistan by Pandemic COVID.
He said that SMEs are considered engine of growth and an important pillar of Pakistan economy for poverty alleviation as they create jobs, increase standard of living and play critical role in ensuring equitable income distribution. He said that there are large number of SMEs in Pakistan which account significantly 40 percent in Pakistan’s GDP and 25 percent in export earnings yet the sector’s full potential is far from realized.
SMEs contribute in all sectors of Pakistan creating a positive impact on Pakistan’s economy. To enable SMEs in Pakistan to play their due role in economic development, Small and Medium Enterprises need encouragement through various initiatives towards fostering growth of SMEs by providing the good infrastructure facilities, industry support and productivity enhancement and energy efficiency, human capital development through its training programs and SME related projects with national and international development partners, Gohar added. He further said that SMEs are playing an important role in construction sector while the shares of banks’ financing to construction-based SMEs constitute just 11.5% of the total bank lending to this sector. The percentage must be increased as construction is largest job providing sector of Pakistan.
He advised all trade bodies to create SMEs Desk at their premises so that SMEs members could drive benefits and take a guide lines particularly about new Innovative SME Assan (easy) scheme to improve access to finance for SMEs introduced by SBP in collaboration with the government of Pakistan which will help ease the hardship of SME sector.
