ISLAMABAD: Federal Minister for Industries and Production Khusro Bakhtyar has said the government is taking challenging steps to develop Small and Medium Enterprises (SMEs).

Speaking at a meeting with presidents of different chambers of commerce and industries along with Adviser to the PM on Commerce and Investment Abdul Razak Dawood, he said the new SME policy would be finalised after extensive consultation with major stakeholders of the business community.

The minister said according to the prime minister’s vision, inclusive economic growth in the country is not possible without growth in the SME sector. The government is currently focusing on the growth of the SME sector, which will increase business and employment opportunities in the country, he said.

Mr Bakhtiar said: “We have also taken microfinance banks on board to solve the financial problems of the SME sector.” Now banks would lend to them keeping in view their risk factors, collateral damage and other factors, he added.

PM’s aide says positive changes being made in policy

Speaking on the occasion, Mr Dawood said the government was making positive changes in the SME policy for the growth of this sector. “This will promote small-scale industries in the country. We have already reduced duties on industrial raw materials by 50 per cent,” he said.

The adviser said that in the coming two budgets, duties on industrial raw material would be reduced by up to 70pc. During the tenure of the current government duties on raw materials have been reduced, but not on finished goods, he added.

Mr Dawood said the government had rationalised tariffs and reduced duties on textiles and the pharmaceutical sector. He said the business community would be consulted for more tariff rationalisation in the SME sector.

Chief Operating Officer of the Small and Medium Enterprise Development Authority Hashim Raza told the meeting that the government would create facilities for this sector under the new SME policy.

He said land acquisition and access to credit and tax simplification would be game changer elements of the proposed policy.

Published in Dawn, November 11th, 2021