Revamping Pakistani small and medium enterprises becomes overdue

Karachi: Modernization of small and medium enterprises in Pakistan has become overdue now to stabilize the sagging economy, says Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver.

He urged Chaudhry Parvez Elahi, senior minister industries and production to take urgent steps for revamping of the SMEs manufacturing sector by providing them information and providing leasing facilities for plant and equipment as they are far behind SME units of other globally competing countries.

He said leasing facilities are provided all over the world to SMEs who wish to modernize and governments always help SMEs to modernize on pay as you earn basis. He said the Small and Medium Enterprises Development Authority (SMEDA) needs to directed to include in its agenda modernization of food, agri-based, engineering, textiles, sports, surgical, cutlery, chemicals and household goods industries and simultaneously impress upon the finance ministry to facilitate the SME sector by leasing modern machinery on fast track basis to compete globally as without leasing facilities the SMEs are unable to purchase machinery.

He said modernization of industries will promote value addition and increase the profits of the SME units substantially giving example of China and India he said many items are manufactured and processed with small machines which occupy little space, are not costly and are easy to install yet are remarkably producing profitable goods.

He pointed out that the SME units are not well versed with the technological progress made by the advanced countries and are using outdated methods for processing and are far behind the manufacturers of competing countries although Pakistan has the raw materials of better grades and qualities.

The union has urged the senior minister industries to take notice of the fact and use his good office and convince the ministry of finance to provide leasing facilities to SME units and also direct SMEDA to provide information about the latest mechanized, computerized systems in processing to enable the SME units adopt them to their advantage for adding value to their products and compete globally.

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