The Union of Small and Medium Enterprises (UNISAME) has expressed profound disappointment and disillusionment with the proposed 2024-25 budget, urging Finance Minister Muhammad Aurangzeb to reconsider critical aspects for the sake of the underprivileged majority sector.
UNISAME President Zulfikar Thaver, while acknowledging some positive steps, voiced significant concerns. He appreciated the relief provided for solar systems, recognizing it as a long-overdue, prudent measure. “This is indeed a wise step in the right direction, as solar energy is the best alternative energy source,” Thaver noted.
The UNISAME Chief also expressed gratitude for the provisions made for export credit guarantees, which will facilitate commercial banks in supporting exports under deferred payment schemes. This, he acknowledged, could potentially boost exports.
“India’s export surge is driven by a robust export guarantee system,” Thaver highlighted, pointing out that Indian exports of rice to Iran, Iraq, Yemen, and Saudi Arabia far surpass Pakistan’s due to this advantage. He emphasized that if implemented earnestly, this system could yield substantial benefits.
However, the gratitude ends there. The UNISAME Council members had anticipated special discount rates and lower subsidized rates for the SME sector. Instead, they encountered a budget that starkly ignores the fundamental needs of the majority sector. The policymakers’ glaring oversight in not addressing affordable finance, energy, raw materials, imports for balancing, modernization, and replacement of machinery, tax incentives, infrastructure, and a conducive environment has left the sector in a state of despair.
“The SME sector is the backbone of our economy, yet the budget fails to comprehend its significance,” UNISAME Chief lamented. “The Finance Minister seems to have overlooked the critical needs of the majority sector, a fundamental error no competent economist would make.”
The budget’s negligence extends to the lack of technical and marketing support, essential for the sector’s growth. This blatant disregard for the SME community’s needs is not just a misstep but a catastrophic oversight that threatens to stifle growth and escalate unemployment.
In summary, the SME community feels betrayed by a budget crafted on erroneous parameters, with UNISAME warning that this miscalculated approach will inevitably create unemployment and hinder economic growth. The government’s failure to cater to the primary sector’s requirements is not just disappointing but a harsh blow to the backbone of the nation’s economy.