SMEs guarantee fast economic development: Meher

LAHORE (APP): Comprehensive measures with collective wisdom should be put in order to strengthen Small and Medium Enterprises (SMEs) which propel trade activity, contribute substantially to innovation and overall economic growth.

Coordinator to Minister of State and Federal Tax Ombudsman, Meher Kashif Younis, stated this, while speaking here at a workshop on “Impact of SMEs in national economy” organized by Gold Ring Economic Forum here on Sunday.

Meher said the SMEs sector in Pakistan needs bank financing which seldom default on loans. In the international trade, he mentioned SMEs are instrumental in connecting economies with the rest of the world and their participation in global value chains enhances trade relations, ultimately strengthening the economic position. He said SMEs generate vast employment opportunities and promote social stability.

These enterprises are often agile and adaptable, enabling them to navigate economic challenges effectively, he remarked In terms of innovation, the Coordinator said, “SMEs are crucial players, driving advancements in various sectors.” He said their ability to quickly adopt new technologies and respond to market demands contributes to the overall competitiveness in the global marketplace.

Meher Kashif Younis said SMEs in Pakistan lack collateral to provide to the banks, and providing them loans on the basis of their balance sheet is a risky business compared to public sector securities with higher interest rates with zero rate of default.

He said, “Strengthening the SMEs is vital for Pakistan’s economy as it generates over 70 percent job opportunities, and promoting technically sound SMEs would mean production of quality and value added products in the country and elimination of non-documented low quality manufacturers.”

He said State Bank of Pakistan, all provincial small industries corporations and all commercial banks must advance loans on soft terms and conditions to the SMEs to achieve the desired results of industrial boom in the country.He said all over the world SMEs playing key role including EU and advanced countries especially China so it is necessary to step up efforts for spreading chain of SMEs nationwide.