KARACHI, Jan 1: Separate industrial zones for small and medium size enterprises (SMEs), having their own set of labour and taxation laws, has been demanded by the Unisame.

The demand was raised by a delegation of Union of Small and Medium Enterprises (Unisame) in a meeting with the Chief Executive Officer of the Small and Medium Enterprises Development Authority (Smeda) Shahab Khawaja.

The Unisame team, led by its convener Zulfikar Thaver, pointed out that the only way to fight poverty, presently basic problem of the country, was to provide employment opportunities through SMEs.

It was proposed that separate SME zones be set up in various parts of the country by providing land and financing on easy terms and conditions. The industrial, labour and taxation laws for such zones should be chalked out by Smeda with a view to providing SME friendly environment.

The Smeda chief Shahab Khawaja assured to take up the suggestion of the Unisame with the quarters concerned. He said that Smeda would work hands in gloves with the Unisame for development of SME sector in the country.

However, the Unisame members urged the government to expand Smeda structure in all major towns and cities of the country instead of reducing its strength by restructuring and downsizing.

Responding to a question of Zulfikar Thaver regarding definition of an SME, Shahab Khawaja clarified that the definition quoted in reference to his meeting at KCCI is the old one. Now, with the announcement of new prudential regulations for SMEs by the State Bank, Smeda has adopted the SME definition as derived by SBP, he added.

The other members of the delegation, while highlighting the problems of SMEs disclosed that SMEs have to satisfy and inter- act with over 32 government agencies as federal, provincial and local level for paying around 46 types of taxes.