APBF for concrete steps to keep industrial wheels running

The All Pakistan Business Forum (APBF) has asked the government to take concrete steps to keep industrial wheels running, especially of SMEs, saving the livelihood of millions of workers associated with the small industries.
APBF President Syed Maaz Mahmood on Monday said that with a view to save the economy from the impacts of the slowdown due to COVID-19, the government should announce special incentives for a cash-strapped small and medium industry which represents more than 90 percent of around 3.2 million business enterprises in Pakistan, contributing 40 percent to the GDP, employing more than 80 percent of non-agricultural workforce, and generating 25 percent of export earnings.
"Mere statements will not work unless solid measures are taken by the government including sizeable reduction in fuel prices, major cut in key policy rate, regionally competitive energy rates, quick refunds payment and relaxation in duties & taxes."
He said the country's SMEs are facing declining demand in overseas markets and facing problems in executing existing orders but real problem is the high cost of production and a long list of duties and taxes. The government should give priority to the SME sector, by reducing its taxes to strengthen overall economic growth in the country, he added.
Syed Maaz Mahmood said that presently industrial production has slowed down and wheels of industry have come to halt. If the situation prolongs, there will be unmanageable level of unemployment, he warned. He proposed the government to suspend sales tax collection from the local industry, restoring zero rating status to the export sector to avoid liquidity crunch in this time of crisis.
He criticized that the reduction of just 0.75 percent in interest rates was a joke and beyond the understanding of the business community as many countries all around the world have reduced their interest rates and even gone to zero.
The APBF chief expressed his concern for not passing on full relief to the public of oil price cut in the global market which has dropped by more than 30 percent, as WTI crude has been reduced to below the $28 per barrel, while Brent crude also plummeted to around $32 per barrel. It is unfortunate that the government instead of providing full relief to the consumers increased GST and petroleum levy on petrol and high speed diesel.
He expressed serious concern over a rate of just 7 percent of private-sector credit for the small and medium enterprises (SMEs) in Pakistan, recommending the State Bank of Pakistan to take regulatory measures to facilitate the sector. He said that private lending to the SMEs was not encouraging and the State Bank of Pakistan needs to take regulatory measures as major chunk of the credit goes to the government effortlessly as well as where no risks are involved.
He said that government is already doing well and epidemic is well in control because of appreciable steps of the government but still a lot of work has to be done to avert its spread.