Karachi: The Union of Small and Medium Enterprises (UNISAME) has urged the Pakistani government to push for special funding from the International Monetary Fund (IMF) dedicated to the needs of small and medium enterprises (SMEs), citing government inaction and a lack of strategic advocacy with international financial bodies.

According to Union of Small and Medium Enterprises, the government has consistently overlooked the SME sector, failing to present a targeted agenda to the IMF despite the sector's significant contributions to the economy. UNISAME President Zulfikar Thaver expressed dissatisfaction with the government's approach, emphasizing the necessity for a robust strategy to elevate SMEs rapidly.

UNISAME has submitted a comprehensive set of proposals aimed at economic growth, ease of doing business, cost-effective operations, and incentivization for SMEs, which they believe should be discussed with the IMF to secure focused attention and support. The proposals also suggest methods for modernizing the sector, including financing options like bridge finance, leasing facilities, and venture capital for innovative new enterprises.

The organization also highlighted the role of the Small and Medium Enterprises Development Authority (SMEDA) in addressing the SMEs' needs for financial services, energy, and modernization. Thaver pointed out that while the government acknowledges the SME sector as the backbone of the economy, capable of stimulating growth and alleviating poverty, it has not effectively advocated for this sector in discussions with the IMF.

UNISAME's statements underline the critical financial and structural challenges facing SMEs, including heavy taxation on profits, the removal of fixed tax regimes, and ongoing crises such as energy shortages. These issues, coupled with the inherent hurdles of inadequate education, infrastructure, and logistics, underscore the need for dedicated support from international financial institutions.

The council members of UNISAME are optimistic that with the government's compliance with IMF-recommended measures, a renewed effort will be made to secure IMF funding specifically tailored for the extensive yet potential-rich SME sector in Pakistan.