ISLAMABAD, JAN 29, (DNA) -Chamber of Small Traders on Sunday said Government’s focus on SMEs uplift can ensure rapid economic development which will resolve many problems including unemployment, reduced exports and dismal revenue situation.

 All the SAARC countries too have designed policies for the promotion of this sector, though with uneven results. Yet their faith in SMEs is ever growing, it said.

 The business community of Islamabad will push the authorities concerned to take steps for swift development of the SME sector, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

 In a statement issued here today, he said that authorities will be asked for special incentives to revive the SME sector which will boost businesses, provide jobs and enhance revenue.

 Shahid Rasheed Butt said that the SME sector has 40 percent share in the GDP while it is behind 30 percent exports while it is employing millions of people across the country.

 He said that among 3.5 million SMEs in Pakistan, 65 percent are located in Punjab facing multiple problems.

 Law and order, energy crisis, lack of regulatory support, incoherent laws, deficiency of market information, and scarcity of skilled labour and want of finances are the main reasons behind lacklustre performance of SME sector, he added.

 The business leader said that high ratio of defaults has compelled lenders to rethink SME financing which requires attention of policymakers.

 He noted that textile and garments sector has emerged as biggest defaulter which failed on 50 percent of its financial obligations which is disturbing for many in the business community.

 He called for reviving textile and garments sectors which is steadily going down due to stiff competition with China, India, Bangladesh and Vietnam.=DNA

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