LAHORE, May 14: Punjab Excise and Taxation Minister Mujtaba Shujaur Rehman said here on Wednesday that a new policy was being evolved for creating a mechanism for achieving higher economic growth based on small and medium enterprises-led private sector development.

Inaugurating a two-day SME Fair at the Lahore Chamber of Commerce and Industry here on Wednesday, he said that the government was endeavouring to make a regulatory framework supportive of small and medium enterprises. It would also take special measures to expedite the process of innovations in the SMEs, and all possible facilities would be extended to the sector.

LCCI President Mohammad Ali Mian said: “SMEs continue to suffer due to their limited role in policy and tariff/tax regimes formulation. The impact of inefficient and costly energy, non-availability of skilled manpower, poor infrastructure and non-availability of credit facilities has deteriorated the SME base during the last five years.”

SMEs constitute 99 per cent of 3.2 million business enterprises in Pakistan and employ nearly 78 per cent of non-agriculture labour force.

The SMEs also contribute over 30 per cent to the GDP, Rs140 billion to exports besides sharing 35pc in value-added manufacturing.

The SME sector, he said, had not been able to realise its full potential, and was suffering because of a number of weaknesses.

He identified labour, taxation, trade capacity, finance and credit availability as major areas for low performance of SMEs.

LCCI Standing Committee on SME Convenor Rehmatullah Javed said small and medium enterprises are the bloodline of industrial power.

The SMEs provide low-cost employment opportunities and help economy by boosting exports, reducing poverty, creating jobs and expediting rural development.

In the European Union and North American countries, the micro and SME sector accounts for up to 70 per cent of all job opportunities.

A full-day training programme on “How to Start and Manage Small Businesses” was also organised for new entrepreneurs on the sidelines of the fair.

The programme was designed to equip entrepreneurs (emerging and existing), especially from SMEs to manage day-to-day business activities.

The contents of the training programme included significance and scope of small businesses in Pakistan; Roadmap to start a successful small business; business plan development; professional management of business and development of business strategies to manage growth of small business.