In a letter written to Federal Commerce Secretary, Tasneem Noorani the union requested for the establishment of the institute explaining that the main function of the institute should be to determine; the number of small and medium enterprises separately, their location, their clusters, their associations if formed, if not to group them accordingly, and secondly to study their requirements and the impediments.
In addition, the union suggested that the institute should also work on the direct and indirect uplifting of the sector by arranging exhibitions, collective marketing, teaching required skills etc.
Further, it should arrange funds for SMEs from banks, DFIs, foreign donors and other sources.
The union pointed out that the Small & Medium Enterprises Development Authority (Smeda) was doing a good job but the authority was being curtailed and restricted to work within a given parameters. It also suggested that the proposed institute should be managed by private & public partnership, but headed by private sector.
Highlighting the multifaceted purposes of the institute, the union mentioned that it could co-ordinate between the different stake holders, develop infrastructures & industrial estates, carry out organised research, provide technical education at all levels, create jobs, motivate SMEs to set up small industries for self employment etc.
The union expressed hope that government would consider its request in the best interest of this sector, which needed immediate attention. It also referred to Shujaat Hussain who had advised the former Finance Minister to consider the request and accordingly the finance ministry was examining the possibilities very seriously.