The government seems conscious of the importance of Small and Medium Enterprises (SMEs) as it makes progress on the National SME Policy likely to be presented on April 11.
The National Assembly (NA) Standing Committee on Industries and Production was briefed on the underway SME policy in a meeting held on Tuesday in parliament house, which was chaired by the member of the NA, Sajid Hussain Turi.
The committee recommended the new SME policy should also be shared with the committee on its finalization. Prime Minister’s Advisor for Commerce, Textile, Industry and Production, and Investment of Pakistan, Abdul Razak Dawood, noted that due to immense economic significance, SMEs in Pakistan was first recognized as a distinct segment at the policy level in 2007. Since then, various initiatives were said to have been taken to promote SME growth in the country.
However, rapidly changing business environment called for a need to revise the SME policy to bring the said sector in line with the global changes, he added.
Small & Medium Enterprises Development Authority (SMEDA) Chief Executive Officer (CEO) also briefed the committee on its vision and mission. He asserted that the federal government decided in 1998 to promote SMEs across the country through encouraging and facilitating the growth and development of SMEs.
He further expressed the mandate of SMEDA as responsible for making the relevant policy, the provision of general planning relating to the SMEs sector in Pakistan and the protection of its interests.
He added SMEDA was also providing assistance for the establishment of an association of persons, firm company, body or corporate concerning SMEs in Pakistan. He said SMEDA was functioning according to its vision, which was “growth of globally competitive SME sector, through a conducive environment and support services, serving as an engine of sustainable growth for the national economy.”
He also explained the mission of the authority and its operational strategies, including the development of sectors, clusters and facilitation of service.
The committee members expressed their concern on the performance of the SMEDA and believed it should set its targets while working on any project. They were also of the view that any potential sector in the country should be identified before making a feasibility report. The committee showed its apprehension on the expenditures and outcome of the SMEDA projects while recommending it may furnish a report on the achievements of its targets from June 2017 to June 2018 along with the details of the businesses provided to women in the furniture industry.
It was also recommended that details of the projects already initiated by the SMEDA in South Punjab (Multan, Rahim Yar Khan and Muzaffargarh) along with its future strategy for the region may also be provided.
Lawmakers voice concern over SMEDA performance, call for subsidy for USC
Utility Stores Corporation Managing Director also briefed the committee about the infrastructure of USC; noting it was established in 1971 as Private Limited Company under Companies Ordinance 1984 (now called companies Act, 2017).
Its major functions were said to protect the real income of the people by selling essential consumer items at prices lower than those in the open market. The USC was also intended to act as a price moderator in the market and a deterrent to profiteering, hoarding and black marketing. He also talked about the existing infrastructure, including the strength of employees. The corporation was comprised of nine zones, 65 regions, 130 warehouses and 3,942 stores, including 92 Franchises, wherein, he added, 5862 regular, 3835 contractual and 3403 daily wages employees were working.
He presented the breakup of the USC Network in the different areas of the country and briefed about the proposed modern techniques for its smooth and efficient working.
While discussing the USC performance, the members were of the view that the government should provide a subsidy for its smooth operations.
The managing director also talked at length about year-wise sales, the subsidy provided by the government, net profit loss as well as the taxes paid by the Corporation. The committee was also told that USC was pulling a contract with a businessman of Saudi origin for procurement of funds up to Rs 5 billion through a deferred payment plan for a period of two years to improve its performance.
The committee was also appraised about the grievances of USC employees as the chief noted that the Establishment Division had allowed the commission to decide the said matter at its own level. He added it may soon be decided in the meeting of its board members.
The committee recommended that an enquiry report regarding the supply of substandard Ghee to USC (earlier) and other utility items, which were stopped at that time, may be furnished for consideration.
It was unanimously recommended that Ministry of Industries & Production’s Senior Joint Secretary, Mushtaq Ahmed, who was currently holding charge of the post of USC Managing Director may be allowed to continue as its Acting Chairman till June 30.