LAHORE: Lahore Chamber of Commerce and Industry (LCCI) President Irfan Iqbal Sheikh has said that Small & Medium Enterprises (SMEs) are backbone of the economy and their role is crucial for economic development of the country and current scenario demands special attention of the government towards this vital sector of economy.
Talking to Small & Medium Enterprises Development Authority (SMEDA) Chief Executive Officer Hashim Raza at SMEDA office here on Monday, he suggested that those SMEs should be given soft loans of Rs. one million with deferred payments that have received utility bills of Rs. 100,000 or above.
Irfan Iqbal Sheikh said that a good workable short-term policy should be evolved for the Small & Medium Enterprises that can enable them to face the challenges posed in the context of coronavirus.
The LCCI President cited the example of China, Korea and United States where an equal importance is being given to the small business. They are treated at par with Large Scale Manufacturing sector.
Irfan Iqbal Sheikh further stated that SMEs hold paramount importance in the Pakistan’s economy. Other than preparing roadmap, there is a need to develop a market for SMEs intermediary services where SMEs, on nominal payment, can acquire the services such as technical know-how, marketing, managerial skills, accounting, book keeping and preparation of basic financial statements. This will improve the bankability of the credit proposals of SMEs and their requests for fixed capital as well as working capital.
Irfan Iqbal Sheikh demanded that the State Bank of Pakistan should ensure easy borrowing for the Small and Medium Enterprises so that they can spread their operation and play their role for employment and revenue generation.