KARACHI: The Union of Small and Medium Enterprises (UNISAME) has appreciated the timely positive steps of the State Bank of Pakistan (SBP), saying it will resolve the financial crunch of SMEs, as well as commercial and corporate sectors.
The association urged the government to allow all those industries- like food processing and pharmaceutical manufacturing- to function who are implementing social distancing protocols amid the coronavirus lockdown.
At a social media-led conference meeting, UNISAME’s finance committee convener Imran Bilal termed the scheme very beneficial scheme for all borrowers, saying now the industry should play positive role in boosting the economy while acting as the government’s partner.
“The government and the central bank have already taken very bold steps to support the industry in terms of various relief packages like tax rebates, low cost refinance schemes, salaries and wages schemes, rescheduling of loans, relief in utilities cost relaxation/reduction in utilities tariff for industry and end users in good time,” he added.
The participants of the meeting appreciated the relief package for the construction sector by recognising it as industry and giving it the support to encompass and promote several connected industries.
They, however, said on the one hand exporters are getting benefits of dollar appreciation on their export proceeds, but on the other importers are getting hit by rupee depreciation so the central bank should take some more steps to strengthen the rupee promptly.
Adding his views, UNISAME President Zulfikar Thaver said smart lockdown system needed to be followed by giving some relaxation to different sector industries like food processing and pharmaceutical manufacturers where computerised machinery is used and distanced monitoring is done by supervisors and one or two assistants.
Thaver urged Industries Minister Hammad Azhar to announce the SME policy to include more SMEs in the economy. “The SME sector is contributing 30pc towards GDP, employs more than 80pc of non-agriculture workforce and generates 25pc of export earnings. The banks are not doing justice to SMEs by offering them less than 7pc of their total fresh lending.”
The total number of SMEs is approximately 6 million, but only a fraction of them qualify for bank loans, Thaver said, adding CPEC is now gathering pace and the sector needs support for technology transfer and collaborations.
UNISAME council members said big industrialists are hinting at declaring economic emergency, which is wrong and they need to understand that our economic stamina doesn’t have the capacity to deliver without replenishing it regularly.
At this point of time, the government must sensibly and intelligently push economic activities by resorting to smart and not complete lockdown, they added.
Asif Ali Khan, a UNISAME council member, suggested SBP must nominate more banks for disbursement of Ehsaas funds to the beneficiaries. He urged very low mark up loans for small shopkeepers.
UNISAME council members urged philanthropists, multinationals and large corporations to enhance their charities and look after the under privileged.
They urged all segments of the society to observe austerity and save food, water and energy to overcome the challenging times.
