THE small and medium-sized enterprises (SMEs) and farmers comprise almost 96 per cent of business entities and they are deprived of basic needs for functioning.

It goes without saying that they are the backbone of the economy and if supported, facilitated, encouraged and motivated can go a long way in promoting economic growth, employment and poverty alleviation.

They are also the vote bank and any wise government cannot afford to ignore them.

Just to refresh the minds of policymakers, the SMEs need a good environment to work smoothly: energy to run machines, finances at affordable markup, an uninterrupted supply of raw material, marketing support, logistics, fair taxation policy and incentives for product improvement and upgradation of units and bearable taxes.

The government has to arrange for funds by tailoring its expenses and giving this sector priority.

This sector is more than willing to pay taxes provided they are based on justice and fair play and the sector gets its requirements from the government in the shape of good governance, infrastructure, energy and logistics.

The government should focus on the requirements of the small sector by providing them land at concession, finance at affordable markup under various leasing schemes to enable them to buy commercial property for shops, workshops, offices, warehouses, industrial plots, income-generating vehicles and raw material and repayment in installments on a pay-as-you-earn basis.

Second, the import of machinery, tractors, generators, farm equipment, technology and packing materials must be at zero-rate duty and exempted from all levies and taxes.

Third, the government must set up the SME chamber of commerce having an export house for marketing of goods manufactured by SMEs and SME institute of technology to arrange for transfer of technology from advanced countries.

Fourth, the sector urgently needs cold storage and dehydration plants for perishable farm items.

Finally, the strength of the Small and Medium Enterprises Development Authority must be increased to enable them to conduct programmes for product improvement and upgradation of industries, item-wise and area-wise.

ZULFIKAR THAVER President, Union of Small and Medium Enterprises Karachi