The Multan Chamber of Commerce & Industry (MCCI) has said that Small and Medium Enterprises (SMEs) can double the national GDP if proper attention was paid to this critical sector. Comprehensive and holistic SME strategy, special incentives, improved focus, better laws, improved regulation, loans and settling energy issue can help SMEs which can turnaround economy as experienced in China, Japan, Korea, Malaysia and other countries, it said. Government has done a commendable job by providing financial support to the falling SMEs in the troubled areas but a lot is to be done, said Fareed Mughis Sheikh President of MCCI.

In a statement issued here on today, he said that SME sector has 40 percent share in the GDP, 30 percent share in exports and it employees 80 percent workforce outside agriculture therefore it cannot be ignored. Fareed Sheikh said that 3.2 million SMEs are registered in Pakistan while a lot more are unregistered which deprive them from many benefits. Law and order, energy crisis, lack of regulatory support, outdated laws, lack of market information and latest trends and want skilled labour as well as finances are the main reasons behind lacklustre performance of SME sector.

SBP pushed banks to boost SME financing has improved the situation to some extent but it is not enough, he said.

Around 96 percent businesses in Pakistan fall under the category of SMEs therefore the regulator must push the banks to revisit policy of ignoring SMEs and chalk out an implementable plan to develop this critical sector to reduce poverty and unemployment.

This sector has the potential to become the engine for growth and propel the national economy into the world's top 25 economic powers which requires a comprehensive and holistic SME strategy, he concluded.

Copyright Business Recorder, 2016