SMALL and medium business enterprises are an important and multi-dimensional part of a country’s economy particularly in the developing world. They have innumerable effects on the gross domestic product of a country.

The Pakistani currency is valued at around Rs133.63 to the dollar. Compared to the rupee, the Japanese yen is valued at Rs1.19. This does not mean that Japan and Pakistan face identical economic problems. The low value of a country’s currency does not mean it is an economic nobody.

The Japanese currency is regulated at a lower value because of Japan’s giant exports to the world. This is indeed an achievement as the Japanese have no major cash crops and almost no cultivated lands and no natural resources compared to Pakistan. The one gift they possess is human resources which they have tapped to its fullest potential.

Pakistan too has ample human talent. The need is to train and direct this resource toward small businesses concentrating solely on export. The government should initiate policies to encourage small businesses that export almost most of their output.

Such businesses will bring multiple benefits to the country like an increase in GDP, drastic reduction in unemployment, greater distribution of wealth in society and more tax revenue for the state.

The government would do better if it helped households set up small businesses rather than building homes for them. This is the way forward.

Aamir Khan Badini

Noshki district, Balochistan

Published in Dawn, November 24th, 2018