The United Business Group (UBG) of The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Sunday said it will push the government to take steps for rapid development of SME sector.
Government will be asked for special incentives to revive the SME sector which is backbone of the economy, said UBG’s candidate for the slot of president FPCCI Zubair Tufail.
Talking to the business community, he said that the SME sector has 40 percent share in the GDP while it is responsible for 30 percent exports while it is employing millions of people.
Zubair Tufail said that among 3.5 million SMEs in Pakistan, 65 percent are located in Punjab while slightly over 2 percent are in in Balochistan which can be balanced through policy interventions.
Law and order, energy crisis, lack of regulatory support, incoherent laws, deficiency of market information, and scarcity of skilled labour and want of finances are the main reasons behind lackluster performance of SME sector he said.
The business leader said that high ratio of defaults has compelled lenders to rethink SME financing which requires attention of policymakers.
He noted that textile and garments sector has emerged as biggest defaulter which failed on 50 percent of its financial obligations which is disturbing.
The UBG leader called for reviving textile and garments sectors which is steadily going down due to stiff competition with China, India, Bangladesh and Vietnam.
