KARACHI, June 12: Leaders of small and medium enterprises have criticised the budget 2008-09 for totally ignoring the SMEs, which constitute more than 98 per cent of the total business and industrial units in the country.

Zafar Iqbal, president of Small and Medium Enterprises Alliance said that the SMEs all over the world hold pivotal position in their respective economies but the economic planners in Pakistan seem to have no consideration for them.

He said there was hardly a single word in the new budget for the development, progress or incentives for SMEs, which are presently hardest hit by ever-increasing cost of production.

The high power rates and rapidly increasing input cost is crippling the working of SMEs, which do not have access to banking funds. This sector, Mr. Iqbal pointed out, provides highest number of jobs and is the backbone of any economy.

The one per cent increase in GST from 15 to 16 per cent will enhance the cost and this will further aggravate the working and viability of SMEs, which work on thin profit margins.