Karachi, October 9, 2023 – The Union of Small and Medium Enterprises (UNISAME) has expressed its support for the government’s stringent actions against currency smuggling, hoarding, profiteering, and malpractices by money exchangers.
While appreciating these measures, UNISAME has also called upon the government to pay special attention to the Small and Medium Enterprises (SMEs) sector, which has been grappling with significant business losses and affordability challenges due to inflation and high production costs, leading to unit closures.
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Zulfikar Thaver, President of UNISAME, emphasized that SMEs are a vital sector of the economy, but they have faced difficulties in importing raw materials, which has hindered their ability to export. Additionally, the few imports they managed were made at previously high exchange rates, resulting in elevated landed costs. With the recent appreciation of the Pakistani rupee, they find themselves in a predicament where their imported costs exceed current market prices. Nonetheless, they remain hopeful that the rupee’s appreciation will eventually prove beneficial, and this is the one silver lining that brings them some comfort.
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Thaver urged the State Bank of Pakistan (SBP) to extend a helping hand to the SME sector by offering special discounts and favorable markup rates to assist them in overcoming these challenging circumstances, similar to the support extended by SBP to businesses during the COVID-19 pandemic.
UNISAME’s council members have called upon the government to prioritize SME units engaged in various sectors, including solar panels, second-hand clothing, pulses, and raw materials for textile units (such as thread, buttons, buckrams, lining, etc.) that are not produced locally.
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Furthermore, they have urged the SBP to facilitate the import of medicines not manufactured in Pakistan and auto parts not produced domestically, allowing for self-financed imports in these categories.
The council members have also requested permission for individuals to import goods worth up to $10,000 if the applicant deposits the corresponding amount in foreign currency into their own accounts, specifically for financing the import of essential items.
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UNISAME’s stance reflects the challenges faced by SMEs in Pakistan and their desire for greater support to help them overcome these hurdles and contribute to the nation’s economic growth.
