Daily Times

KARACHI: The claims to exports target of $40 billion in Strategic Trade Policy Framework (STPF) 2015-18, still seem gloomy and will not be possible without contribution of small and medium enterprises (SMEs) sector, as its inclusion is of vital importance.

The Ministry of Commerce should re-devise its priorities and policy framework to vigorised SME sector, exporters and representatives of Union of Small and Medium Enterprises (UNISAME) opined.

Strategic support to SME sector from government and to invigorate Trade Development Authority of Pakistan (TDAP)’s priorities on ground of providing marketing support to engineering, sports and surgical goods, textiles, rice and other commodities can make a difference.

Prime sectors’ exports have fallen considerably and strategy is required to include SMEs in order to enhance exports.

Government has never taken demands of SMEs for export house seriously and SME export house is the need of the hour and a modern export house having all facilities of providing information, education, search engines and product galleries is required to achieve targets and without SME sector government will never be able to achieve the export target, members of prime and developing export sectors asserted.

Agha Saiddain and Anjum Zafar of Pakistan Tanners Association, Ghulam Rabbani and Shakeel Ahmad of cotton and yarn sector, Jawed Bilwani of Pakistan Apparel Forum, Sanaullah Khan of All Pakistan Marble Mining Processing Industry and Exporters Association, Ibrahim Qureshi of All Pakistan Business Forum, executive members of Surgical Instruments Manufacturing Association Pakistan, sport goods and carpet sectors were of the view, SME sector has potentiality to double its exports if it gets support of Small and Medium Enterprises Development Authority and TDAP in real term.

But both the authorities are unable to comprehend advantages and merits of proposed export house.

Saiddain pointed out that in budget estimates 2014-15, federal government had earmarked Rs 2 billion towards STPF. Not a penny was spent under this head, according to budgetary documents.

The government had missed exports target of $27 billion and revised target of $24.2 billion during financial year 2014-15. Pakistan’s exports had gone down by 4.88 percent to $ 23.885 billion in this fiscal from $25.11 billion of the preceding year.

Government had failed to achieve targets set in previous Strategic Trade Policy Framework 2012-15. The government failed to achieve exports target of $95 billion in three years, as it remained under $70 billion mainly due to poor law and order and energy situation in the country.

Business people from UNISAME were of the view that establishment of Exim Bank and revamping of SME Bank and SME Leasing, other institutions of prime importance are SME insurance, venture capital fund and SME technical institute could be game changer.

SMEs have potential to elevate Pakistan’s position from a lower middle income to upper middle-income country, opined Ghulam Rabbani.

Around 99 percent of enterprises in Pakistan are SME’s and Ministry for Planning, Development and Reform should impress upon the government to facilitate the sector.

Sanaullah Khan said SME sector is majority sector, the backbone of the economy, the back forte of the large industry and the vehicle for income generation and employment and deserves priority.

He urged implementation of SME policy in letter and spirit and strengthening SMEDA in line with study conducted by World Bank.

The SME policy is a comprehensive document prepared after consultations with all stakeholders and after incurring huge expenses and envisages all aspects of SME promotion and development, Shakeel referred.

Ombudsman, credit guarantee, venture capital, SME specific bank and institute remained a dream. The sector and stakeholders fails to understand why it has been shelved.

They urged the government to facilitate the sector from grass root level, especially micro and the small, who have been neglected. The farm sector and the primary sector, which is the source of raw material is very orthodox and needs to be modernised.

They emphasised the need to allocate land on easy installments and provide finance at affordable mark up, most importantly access to finance, which was missing.

They stressed on the need for rapid and jump start of alternate energy units and pleaded for zero duty and charges on devices.

They urged Ministry of Planning to sharpen trade policy to include barter trade, currency swap and discourage smuggling by regularising border trade.

The withholding tax (WHT) system is unfair as it subjects even those who are not obliged to pay taxes by virtue of exemption and instead income tax should be imposed on agriculture. Every entrepreneur is willing to pay income tax as it is on income but WHT is questionable.

We are sure growth and progress in agriculture, manufacturing, services and trading with particular expectations of enhancing agro-based industries will make the distinction.