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Lahore Chamber of Commerce and Industries (LCCI) Acting President Yaqoob Tahir Izhar and Vice President Mubasher Sheikh while hailing the approval of first Small and Medium Enterprises (SME) policy by the Federal Cabinet have emphasised the need to activate and strengthen the SMEs in the country, as these enterprises are the largest employment generation tools.
According to a LCCI's spokesman here on Thursday, the LCCI office-bearers said that the government should ensure the participation of private sector for the implementation of newly approved SME policy in letter and spirit. They said that the government should also curtail the role of government departments for the speedy development of the SME sector.
Keeping in view the fast changing global scenario there is a need to improve the logistics, remove red-tape and improve efficiency of the small and medium enterprises at the district, provincial and Federal levels to get desired results on the economic front.
The LCCI Acting President said that it has been a long-standing demand of the Lahore Chamber of Commerce and Industry that the government should ensure the access of private sector to the financial and technological resources for the availability of working capital to the SMEs. "Small and medium enterprises are the backbone of Pakistan's economy, providing employment to 80 percent of the industrial labour force and contributing around 40 percent to GDP," he added. This crucial sector of the economy provides low cost employment opportunities and helps the economy in two valuable ways: One for boosting exports and two in poverty reduction. Also, a strong SME presence provides the resilience to the economy from global economic fluctuations that the large business enterprises are unable to respond to quickly, he added.

Copyright Business Recorder, 2007

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