PAKISTAN LAUNCHES FIRST SMALL AND MEDIUM ENTERPRISES POLICY
DATELINE: ISLAMABAD Aug 20
The first ever Small and Medium Enterprises (SME) policy was launched in Islamabad last Wednesday to spur economic growth with the aim of poverty reduction, job creation and entrepreneurialship.
The Minister for Industries and Special Initiatives, Jehangir Khan Tareen announced the policy at a news conference after chairing the meeting of the National Steering Committee on SMEs. The policy forecasts the development of an SME Act to identify and simplify fiscal, registration, labour and inspection laws for the sector.
The policy provides for the establishment of Small Business Development Centres in six major cities to promote SMEs. SME Desks would be established at the Federal, Provincial, Banking and Tax Ombudsman offices for handling and addressing SME grievances.
Provincial Governments have been asked to develop Sundar Industrial Estate type SME specific clusters to facilitate rapid growth of the sector.
A minimum quota would be reserved for SMEs for allocation of land in the Industrial Estates and Export Processing Zones. SMEs may be charged a concessional rate of land as compared to the cost offered to large-scale enterprises.
Rural based and agro-processing enterprises would receive special attention with plans for specific support mechanisms. Similarly, women and other marginalized groups would receive a special focus within the SME policy.
The policy envisages the establishment of Credit Guarantee and Credit Insurance agencies to provide banks with relevant support in financing SMEs.
It also envisages the promotion of Islamic mode of financing for SMEs. A Need Assessment Survey would be undertaken before the end of the year to identify major SME needs in human resource development, technology upgradation and marketing.
Institutes of Small and Medium enterprise and Entrepreneurship Development are proposed to be established in select business schools. SME specific research projects would be undertaken supporting R&D and University-Industry liaison programmes offered. Pilot technology upgrading projects would be launched for major SME clusters on cost sharing basis.
The policy also promises encouragement for establishment of SME sector specific for export marketing companies, matching grants for developing world class trade and product directories for major SME clusters and the establishment of annual SME awards for recognizing outstanding performance in domestic and international markets and technology innovation.
(PPI)