KARACHI: Leaders of United Business Group (UBG) Chief Petron SM Tanveer, President Zubair Tufail, Secretary General (Sindh) Hanif Gohar, core committee Members Momin Ali Malik and Malik Khuda Bakhsh have made an urgent appeal to the government of Pakistan to introduce a comprehensive relief package of incentives for the struggling cottage sector and Small and Medium Enterprises (SMEs) across the country.
The ongoing economic crises, coupled with exorbitant utility charges and severe gas and power load shedding, have created immense challenges for these sectors, leading to the closure of many businesses.
They said that the cottage and SME sectors play a crucial role in the economic prosperity of Pakistan, providing livelihoods for millions of people without placing a burden on the government.
However, the current hardships faced by these sectors demand immediate attention and support. UBG emphasizes that the closure of cottage and SME businesses will have severe repercussions on the entire industrial sector, which relies on them for their by-products. In addition, many industries that support these sectors have also faced production reductions or closures due to factors like fluctuating exchange rates and prolonged power and gas shortages.
The soaring interest rates of up to 22 percent, combined with bank service charges, have rendered loans unaffordable for both small and medium-sized industries, further exacerbating the economic crisis.
UBG calls for comprehensive measures to assess the gravity of the present economic situation and urges the government to take prompt action for the survival of cottage and SMEs. Regarding infrastructure, UBG appeals to both federal and provincial governments to take advanced precautionary measures for expected rains to avert any untoward situations this year.
UBG believes that the current economic challenges faced by the cottage sector and SMEs have been exacerbated by improper attention, lack of targeted measures, and the constraints imposed by IMF conditionalities that disproportionately affect the poor masses. To alleviate the current situation, UBG recommends that the government consider facilitating the cottage sector and SMEs with deferred payments for their utility bills (gas, power, and water) for a minimum period of 6 months. Such measures will help these businesses survive the current crises. Furthermore, UBG appeals to the government to provide interest-free soft loans to the cottage and SMEs through SME banks, based on recommendations from their respective trade bodies. This financial assistance will aid these sectors in stabilizing their operations and promoting economic growth.
UBG acknowledges that the challenges faced by the cottage sector and SMEs require immediate attention, and it urges the government to take proactive steps to ensure the sustainability and growth of these essential sectors of the Pakistani economy.
UBG which is a leading organization of the business community reaffirms its commitment to representing the interests of the business community in Pakistan with a strong focus on promoting economic growth and sustainable development. UBG actively works to address the challenges faced by various sectors and advocates for policies that foster business-friendly environments.
Copyright Business Recorder, 2024
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