09 January 2005	Sunday	27 Ziqa'ad 1425

KARACHI, Jan 8: All the four working committees of the Task Force for SME Development Policy while submitting their reports have given wide range of suggestions, including setting up of SME Ombudsman office , introduction of bankruptcy law and imparting technical and vocational education through private-public partnerships and introduction of protection laws for SMEs.

It was strongly recommended that various laws affecting SMEs should be revised and other matters related to market intelligence and facilities for SMEs such as land, infrastructure, and setting up of SME Credit Guarantee and Insurance Funds should be ensured.

These reports were submitted by the heads of the working committees in a meeting held on Friday, in Islamabad and chaired by Additional Secretary Ministry of Industries, Production and Special Initiatives (MOIP&SI).

The participants were also asked to give detailed process and time-bound action and resource plan for consultative preparation and implementation of the SME Policy by March 31, 2005. It was also informed that the SME Policy will be finalized by June 2005 and implemented by the government with priorities set out in the time plan.

Nauman Wazir a member of Smeda Board and chairman of working committee on business environment made an exhaustive presentation over protection laws for SMEs and setting up SME Ombudsman office and creation of separate cells for SMEs in all government and institutions like banks, insurance and shipping companies.

The working committee to finance recommended revision of SME definition of State Bank of Pakistan, regulatory measures for non-corporate entities and periodic review of Prudential Regulations by the SBP. It also suggested setting up SME Credit Bureau and establishment of Venture Capital fund and other financial solutions for SMEs.

President Union of Small and Medium Enterprises (Unisame) Zulfikar Thaver and chairman of working committee on SMEs Definition suggested a common definition for SMEs if targeted and focused planning and progress was to be achieved in this sector, which provides highest employment opportunities.

He said definition was the foremost requirement and his committee after the consultation with all the stakeholders evolved a definition. He informed the participants that the definition has been split distinctly into small and medium as per the demand of stakeholders.

Giving some details, he said enterprises having employment up to 50 (Manufacturing and services) and those of trading with 20 persons and assets (excluding land and building) of Rs30 million (manufacturing) and for services and trade with Rs20 million or sales up to Rs100 million will fall under the definition of small enterprises category.

Similarly, he said enterprises with employment size above 50 and up to 250 (manufacturing and services) and for trading 21 up to 50 and having assets more than Rs30 million and up to Rs100 million (manufacturing) and Rs20 million and up to Rs50 million for services and trade or more than Rs100 million and up to Rs300 million will come under the definition of medium enterprises.

The MOIP&SI constituted a Task Force for SME Development Policy under the SME sector Development Programme with members from government organizations and private sector. The terms of reference of the task force is to consult stakeholders including SMEs and SME organizations in each province to elicit views to discuss SME issue papers prepared by Smeda and draft the SME Policy 2005.

The Task Force had constituted four working committees headed by chairpersons Nauman Wazir for Business Environment, Access to Resources and Service headed by Shahzaad Alam, Access to Finance and Related Services headed by Shaukat Tareen, SME Definition, Feed back, Evaluation and Monitoring Mechanism is headed by Zulfikar Thaver.