President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Friday said the government should establish a separate fund to cater for the capital requirements of the SME sector.
Many countries have ensured development by promoting the SME sector but here the situation is different as this sector is only getting 7 per cent share in all the loans issued to the private sector, he said.
Speaking at a seminar titled, “SME – A Source of Socio-Economic Development: Prospects and Challenges” held at Bahria University’s Karachi Campus, he said that existing tax laws are compatible for large industries but they are not in conformity with the SME sector.
Therefore, he said, a separate independent revenue authority based on different laws is needed to boost the SME sector which covers 96 per cent of all the businesses in Pakistan.
Mian Zahid Hussain said that SME is a labour intensive sector which can absorb many unemployed individuals as around 2 million youth is entering the job market every year with fewer opportunities by the year.
He also called for establishing a separate fund of 1 trillion rupees with flexible rules for the development of this sector under the direct supervision of the central bank.
All efforts for the promotion of exports have failed, therefore, the government should not try the counterproductive departments and establish 10 export promotion companies with the consultation of the private sector to boost exports, he demanded.
He also called for the establishment of IT centres in every major city to impart training regarding business development and teach application development to bright ones.
Head of Department Management Sciences Prof. Dr Mustaghis Ur Rehman, Secretary General Employers Federation of Pakistan Mr Faseeh Ul Kareem Siddiqui, Ali Sabeeh and Prof Seema Zia along with others also addressed at the seminar.
