ISLAMABAD, Dec 4: SME sector should be supported through relaxation in taxes and financial assistance, said Mahfooz Elahi, President of Islamabad Chamber of Commerce and Industry (ICCI).

Speaking to business community here on Saturday, Mehfooz Elahi said that SMEs constitute nearly 90 per cent of all enterprises in Pakistan, employ 80 per cent of the non-agricultural labour force and their share in the annual GDP is 40 per cent, approximately.

However, unlike large enterprises in the formal sector, a small and medium enterprise is constrained by financial and other resources.Mahfooz Elahi said that the current SME policy of Pakistan does not take into explicit account the heterogeneity of the sector and, thus, consists of broad recommendations for the entire SME sector.

The president said that the government's financial support is also needed for purchase and lease of suitable machines for use of micro enterprises.

Small firms may be granted this facility to get these machines. In addition, small firms may be granted reduction of corporation and enterprise taxes, and also exempted from stamp duty, property tax, local rates, etc. same as it was practiced in Japan and Korea for the promotion of SMEs.—APP