Karachi, June 6, 2023: The Small and Medium Enterprises Development Authority (SMEDA) has extended an invitation to the Union of Small and Medium Enterprises (UNISAME) to discuss the pressing issues faced by SME importers due to the unavailability of dollars. The meeting is scheduled to take place on June 7 at SMEDA’s provincial office in Karachi.
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UNISAME President Zulfikar Thaver stated that the invitees will present a concise overview of the challenges and proposed solutions to Mukesh Kumar, the provincial chief, and other officials. The difficulties faced by SME units, which are on the brink of closure due to the inability to import raw materials and packaging materials, will be highlighted.
Thaver emphasized the vital role of imports and exports in the economic fabric, stating that without imports, the economy cannot thrive, and SMEs will struggle to export their products. As the inventory of imported raw materials depletes day by day, urgent solutions are required to finance imports.
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Abdul Rauf Abdul Aziz, convener of the import facilitation committee, plans to propose the issuance of bonus vouchers (BV) against all inward remittances from overseas Pakistanis. These BVs can be utilized for financing imports, with importers having the option to purchase them from the open market at prevailing rates. This approach would enable beneficiaries to access open market rates.
Shaukat Ali, convener of the banking committee, intends to urge SMEDA to explore the option of obtaining dollars from international institutions by using gold pledged by Pakistanis. Additionally, he will highlight the proposed “Support Beloved Pakistan” scheme, wherein patriotic Pakistanis who wish to prevent default can purchase dollar bearer certificates using their overseas or stored dollars.
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Hussain Ali Ratnani, convener of the logistics committee, will explain how the BV system can supersede the hawala system and eliminate under-invoicing by fixing import duties and rendering the import price declared in the invoice insignificant due to the import trade permit.
Other UNISAME Council members, including Muzammil Rauf, Asif Chase, and Anver Mian Noor, have also been invited to participate and are expected to endorse the committee’s views.
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In the subsequent phase, UNISAME plans to request a meeting with the State Bank of Pakistan’s exchange control department to present the merits of the BV system, as well as the gold and dollar bearer certificates.
UNISAME Council members remain optimistic that their proposals will be examined immediately after the budget and, upon approval, presented to the cabinet for prompt implementation, thereby establishing the BV as a negotiable instrument.