Small and medium enterprises who have made a name need be rewarded and their success stories need to be highlighted to inspire other small and medium enterprises: Ahsan Iqbal

Karachi, April 29, 2014 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) invited the attention of the planning , development and reforms federal minister Prof. Ahsan Iqbal, Khurram Dastagir federal commerce minister and parliamentary secretary Mr Rana at a round table conference for SME growth that the SMEs are unable to get finance from the banks.

The banks lack risk management training and although the State Bank of Pakistan (SBP) has come up with good schemes for SMEs the commercial banks are defeating the very concept by not willing to take risk.

President UNISAME Zulfikar Thaver on behalf of himself and the union thanked Ahsan Iqbal and Khurram Dastagir for their keen interest in the sector and reminded them that unless and until the banks are made comfortable in financing the SMEs by means of a credit guarantee insurance the banks will decline the applications of the sector.

Thaver said the SBP has commenced indemnifying the banks but only upto 40% but this percentage is not acceptable to the commercial banks and they need a bigger guarantee to finance the SMEs.

In response to Prof Ahsan Iqbal’s question about increase in export of SME goods, the union chief informed him that the Trade Development Authority of Pakistan (TDAP) had prepared the papers for an SME export house and even the Small and Medium Enterprises Development Authority (SMEDA) had submitted a model of a trading house but due to lack of funds the SME export house was not established.

The SME export house would teach the SMEs how to export, how to negotiate business and would set up an export gallery and exhibit the SME wares globally and find buyers for the sector.

UNISAME in response to Prof Ahsan Iqbal query about how best the SMEs could be facilitated said that the SMEs need incentives for purchase of commercial property and urged him to promote the concept of pay as you earn, leasing and financing to buy shops, offices, workshops under leasing facilities.

Prof Ahsan Iqbal suggested that the SMEs who have made a name for themselves need to be rewarded and their success stories need to be highlighted to inspire other SMEs.

UNISAME has taken his suggestion well and would soon arrange to honour the successful SMEs who have grown into huge entities and have earned reputation for their products and created a brand image. UNISAME with the help and support of SMEDA will follow the advice of the minister.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Phones: + 92 35884225 and 6
Cell: + 92 300 8245307 and + 92 321 8245307
Fax: + 92 35380642
Email: unisame@gmail.com

The post Small and medium enterprises who have made a name need be rewarded and their success stories need to be highlighted to inspire other small and medium enterprises: Ahsan Iqbal appeared first on Business News Pakistan.

   

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