The Federal Minister for Industries and Production, Liaquat Ali Jatoi has suggested strengthening of technical, marketing and managerial expertise of SME sector in the non-OECD member states and greater access to capital lending by the commercial banks and specialised financial institutions on reduced mark up.
He said this while addressing the 2nd Organisation of Economic Co-operation and Development (OECD) Ministerial Conference at Istanbul on Friday.
According to a message received from Istanbul, he said that developed countries will have to come forward to play their role by transfer of technology and financial help to developing countries, if they are not at pace with them, at least they can economically survive.
Gap between richer and poor countries is widening. We will have to reduce this gap otherwise it is going to be world disorder rather than order, he added. He also stressed the need for regional economic co-operation and integration for promotion of SME and cluster development and trading houses for SME sector.
SMEs all over the world has played a fundamental role in promoting economic and industrial development. In particular, SMEs provide the necessary foundation/breeding ground for sustained growth and rising incomes in the developing countries.
It is difficult to imagine raising overall living standards and social stability in these countries without SME development. The minister further proposed improving the competitiveness of SMEs sector through reducing cost of doing business and regulatory impediments at domestic level and removing non-tariff barriers for products of SME sector in the developed world, Increased investment flow in the SME sector both by domestic and foreign investors, and use of information technology and E-commerce.
Jatoi said people in many developing countries are without pure drinking water, roads, hospitals and schools. If we cannot provide basic facilities in 21st century then we are doing the exercise in economic development in futile. Let us give what the needy need.
In Pakistan, access to markets is the cornerstone of the government's facilitation strategy. To this end, the government has put in place various programmes and schemes for small and medium-sized enterprises (SMEs). He highlighted the government's efforts for promotion of SME sector in Pakistan, and stated that a national level convention on SMEs will be held next month at the initiative of President of Pakistan who attaches lot of importance to this sector.
All stakeholders are going to participate. Without solving the problem of SMEs, we cannot expect this sector to grow, he observed.
In the globalisation process for SME development, there is need for a comprehensive and well-integrated package of policy decisions both on the supply side (ie, the developing countries) and on demand side (ie, the developed countries) to foster the growth of a vibrant SME sector and, improve the competitiveness of SMEs in both domestic and international markets.
Before concluding his address, he hoped the Working Party on SMEs will consider their recommendations and provide solutions to the problems facing SME's to achieve the desired objective of Bologna Charter to enable the member as well as non-member countries alike to adopt polices accordingly.