KARACHI, Feb 27: The Union of Small and Medium Enterprises (Unisame) has appealed to the task force on small and medium enterprises to review the matter of SME act and policy at the earliest and overcome objections of the ministry of labour regarding the exemption of SMEs from labour laws.

Unisame President Zulfikar Thaver, who is also member of the SME task force, draws the attention of the task force chairman to the importance of exemption of SMEs from the labour laws and suggests that either SMEs be exempted or the labour laws be redrafted in a way that suits and facilitate the SME sector.

He requested the task force chairman, who is also federal secretary of the ministry of industries and production, to urge the State Bank to modify, if they deem fit, SME definition to classify the small and the medium according to the definition proposed by the task force committee.

Mr Thaver pointed out that it would be appropriate that small and medium were defined according to productive assets, employment strength and turnover. He said since the SBP enjoyed an autonomous status, the committee could not impose any definition but could only persuade and suggest the central bank.

He said further that there should be a separate and clear definition between small and medium enterprises, otherwise banks would comfortably cater to the needs of medium and ignore small business set-ups.

The Unisame chief said that due to pragmatic policies of the government, the medium sector was doing well and had joined the mainstream but the small sector was left far behind and needed urgent attention.