Karachi: The Union of Small and Medium Enterprises (UNISAME) has submitted a proposal to Prime Minister Shehnaaz Sharif aimed at accelerating the growth of the small and medium enterprises (SME) sector in Pakistan. The proposal, spearheaded by UNISAME President Zulfikar Thaver, seeks to address the challenges faced by entrepreneurs in securing capital for business expansion.

According to Union of Small and Medium Enterprises, the proposal outlines a Pay-As-You-Earn Asset-Based Financing Scheme. This initiative would enable entrepreneurs to acquire necessary income-generating assets, such as machinery and commercial premises, with the government facilitating the acquisition. The assets would be mortgaged to the government until the entrepreneur repays the cost through a portion of the income generated by the asset.

The proposed scheme aims to redefine creditworthiness by focusing on the productive capacity of assets rather than personal wealth. This shift could integrate skilled, under-capitalized entrepreneurs into the formal economy, enhancing employment opportunities, broadening the tax base, and bolstering the SME sector's contribution to the national GDP.

UNISAME has provided a comprehensive document detailing the proposal's rationale, mechanism, eligible asset categories, and a phased implementation roadmap. The organization has expressed its willingness to present the proposal in detail to the Prime Minister's office or relevant ministry and assist in its development and pilot phases.

UNISAME extended its gratitude to the Prime Minister for his attention to the SME sector and anticipates favorable consideration of the proposal.