Govt unveils SME policy with special focus on promoting around 5mln businesses

Islamabad: Federal Minister for Industries Khusro Bakhtiar unveiled the Small and Medium Enterprises (SME) Policy on Wednesday, with special focus on promoting around 5 million businesses through facilitation in registration, streamlining of taxes, access to credit and provision of land.

Addressing a press conference along with Federal Minister for Information and Broadcasting Fawad Chaudhry, the minister said that this was for the first time that the policy comes with a proper implementation mechanism.

He said that the policy was made in 2007 but only in papers and asserted that this time it was being introduced with implementation mechanism under the supervision of National Coordination Committee with proper deadlines of tasks.

Khusro Bakhtiar maintained that there were around five million SME businesses in the country including one million in manufacturing sector in the shape of different enterprises.

The minister said that SME sector was playing crucial role in promoting inclusive economic growth in addition to providing 78 per cent of employment (if agriculture is excluded) and promoting exports.

He said that the policy has relieved the businessmen of regulatory burden by either excluding the condition of obtaining No Objection Certificate (NOC) or have minimized its requirements.

He said ‘Zero time to start up’ initiative has been introduced under which the sector has been divided in three categories including low, medium and high risk SMEs.

The minister said that the NoC condition for the low risk businesses including services sector, wholesale transport has been abolished whereas the medium risk businesses such as light engineering, leather, auto-parts, sports goods and cutlery can get their approval within 30 days after applying for the same.

He said, in case the businesses fail, 40 to 60 percent loss would be bore by government and commercial banks. He said, the government had already earmarked Rs23.5 billion for the purpose. He said there were several other schemes the government would introduce to promote SME sector.

On provision of land, he said, the federal government in collaboration with Punjab and Baluchistan and Khyber Pakhtunkhawa governments has earmarked 4200 acres of land, which would be transformed into 19500 plots to provide the businessman on easy loans.

He requested the Sindh government to do the same, however added that the federal government would provide such plots in Karachi from its industrial parks.

Speaking on the occasion, Fawad Chaudhry highlighted the importance of developing strong industrial foundation to promote growth and cater to the needs of 220 million population.

He said unless the industrial sector of the country was promoted, it would be hard to come out of economic problems.