FPCCI Urges For Easy Access Of Finances To SMEs
Fahad Shabbir (@FahadShabbir) Published November 08, 2016 | 09:00 PM
KARACHI, Nov 8 (UrduPoint / Pakistan Point News - 08th Nov, 2016 ) : Senior Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Shaikh Khalid Tawab has emphasized on easy and maximum availability of finance to small and medium enterprises (SMEs), which are the backbone of economy of a country.
"SMEs shall contribute significantly in the economic and social development, employment generation and poverty alleviation of the country," he said in a statement here on Tuesday. It was regrettable that 95 percent of the country's enterprises were SMEs and only seven to eight percent credit financing of private sectors was given to this core industrial sector.
Most of the credit were given to corporate sector. SMEs contributed over 40 percent to the country's gross domestic product (GDP) and 25 percent in exports earning and employed 80 percent of non-agriculture labor force.
Quoting the examples of other countries, he mentioned that SMEs were dominating in China, Taiwan, Singapore, Hong Kong and Korea and contributed more than 80 percent in their development.
These countries achieved the status of industrial advanced countries or newly industrial nations just on the basis of development of SMEs sector.
Pakistan should learn from the experience of these countries and formulate SMEs driven policies, he asserted. He elaborated that in Pakistan the banks were generally reluctant to give loans to SMEs sector due to high risk and transaction cost.
Ninety percent SMEs loans were given on collateral basis and commercial banks lacked effective credit models to finance SMEs. Without easy availability of the required finance and other facilities, he cautioned, it was difficult for SMEs to modernize, innovate and expand themselves.
Shaikh Khalid Tawab urged the government for taking significant measures for development of SMEs sector including training of the investors on the issues related to Cost-competitiveness, quality competitiveness, marketing, networking, product diversification, starting a business, business plan, legal issues, financial management and time management.
Related Topics
Recent Stories
Dubai Mum Becomes the First Ever Pakistani Woman to Climb 11 of the 14 Highest M ..
Over 37% Tobacco tax increase suggested to save lives, boost revenue
Mohsin Naqvi has offered a substantial incentive, pledging $100,000 to every pla ..
Citizens join Al Barsha Police in “An Hour for Dubai” Initiative
Art can be a powerful tool to relieve stress, Experts say at Sharjah Children’ ..
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 5 May 2024
Today Gold Rate in Pakistan 05 May 2024
Bugti assures transporters for addressing their problems
Deputy Prime Minister and Foreign Minister, Mohammad Ishaq Dar meets foreign min ..
3 drug peddlers arrested, hashish recovered
1496,990 children given polio drops in five days: DC
Six terrorists killed, hideout busted in N Waziristan IBO: ISPR
More Stories From Business
-
PIACL restructuring approved by SECP
7 hours ago -
Saudi trade delegation arrives in Pakistan for investment cooperation
8 hours ago -
Saudi trade delegation arrives Pakistan for mutual investment cooperation
10 hours ago -
FPCCI urges urgent action amidst Pakistan’s economic situation
11 hours ago -
Over 37% Tobacco tax increase suggested to save lives, boost revenue
11 hours ago -
Pak-Saudi investment conference to be held on Monday
12 hours ago
-
NPO launches program for development of gemstone sector
15 hours ago -
PFC to take part in Riyadh Intel. expo
16 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 5 May 2024
21 hours ago -
Today Gold Rate in Pakistan 05 May 2024
22 hours ago -
CRD survey unveils 18% Pakistanis quit smoking
1 day ago -
NTUF granted patent for Innovative Multilayered Natural Fiber Composite Helmet
1 day ago