The LCCI President, Mian Anjum Nisar, has urged the government to ensure a balanced growth of large, medium and small scale enterprises with relatively more emphasis on small and cottage industry.
Talking to Roohi Raees Khan, Head of Corporate Advisory, Crescent Standard Investment Bank Towers here on Wednesday, he said that the SMEs growth is far below the desired, mainly due to mark-up rate.
If the government wants to expedite the SMEs growth, it should decrease the rate of mark-up at the first place and increase the amount of loan at the second, he proposed.
The LCCI observed that the availability of working capital at affordable rates is critical to the viability of the business operations while higher markup rate is against the spirit of SMEs development.
"SMEs are the backbone of our economy, therefore, the government should provide maximum facilities to this sector.
According to Mian Anjum Nisar, the State Bank of Pakistan should enact some law and allocate a certain amount for the promotion of SMEs. He said the LCCI was doing its best for the promotion of SMEs in the country as this could help eradicate unemployment from the country besides bring in more investment.
He also suggested changes in prudential laws and procedures to facilitate the small and medium enterprises.
Roohi Raees Khan while speaking on the occasion pointed out that there is no database for SME sector, so there is a dire need for research in this sector. She proposed that LCCI could extend co-operation in this respect.
She said that ADB is providing US 200 million dollars for the development of SMEs and the step would yield results soon. Moreover, UNIDO is also working for the development of this sector, she informed the LCCI president.
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