Karachi: The Union of Small and Medium Enterprises (UNISAME) has issued an urgent appeal to Prime Minister Shehbaz Sharif, calling for immediate action to prevent the small and medium enterprise (SME) sector from facing significant setbacks. The SME sector, which comprises a major part of the economy, is reportedly struggling with various challenges, risking further decline without swift governmental intervention.
According to Union of Small and Medium Enterprises, the SME sector is currently in a state of turmoil, deteriorating day by day. The organization's president, Zulfikar Thaver, along with council members, emphasized the need for rapid development and prioritization of SMEs. They highlighted several pressing challenges faced by the sector including high energy costs, expensive financing, technological gaps, limited access to finance, insufficient marketing support, and an overall high cost of doing business.
The council has urged the prime minister to mandate the immediate establishment of multiple support structures such as an SME Bureau, a dedicated SME bank, and a value addition bureau. Additionally, the creation of an Office of SME Ombudsman, an SME police liaison committee, and an SME gallery for global marketing support were proposed. They also suggested implementing subsidies for alternate energy and the elimination of redundant rules and regulations that stifle growth. The aim is to ensure streamlined operations through effective one-window operations.
Furthermore, the UNISAME council has called attention to the need to expand the capabilities of the Small and Medium Enterprises Development Authority (SMEDA). This expansion would allow SMEDA to better support a wider range of businesses from micro to medium scale, including farmers. In case these recommendations are not feasible, the council advises that SMEDA should be placed under the cabinet division for direct reporting to both the cabinet and the prime minister, as suggested in a report by the Asian Development Bank.