KP Govt Taking Measures To Ease Regulations For SMEs: Ghazan

Special Assistant to the Chief Minister Syed Ghazi Ghazan Jamal Wednesday said the provincial government of Khyber Pakhtunkhwa (KP) is taking all possible measures to ease the regulations for Small and Medium Enterprises (SMEs)

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Sep, 2020 ):Special Assistant to the Chief Minister Syed Ghazi Ghazan Jamal Wednesday said the provincial government of Khyber Pakhtunkhwa (KP) is taking all possible measures to ease the regulations for Small and Medium Enterprises (SMEs).

He said this while sharing his views at virtual public private dialogue 'Better Business Regulatory Environment for SME Sector of Khyber Pakhtunkhwa' organized by the the Sustainable Development Policy Institute (SDPI) here.

Besides, other steps, a provincial single window on the lines of Pakistan (National) single window are also being established, he added.

While elaborating the vision of provincial government of KP further on single window, Ghazan said it would provide access to utilities, tax payments, business registrations, and possibly also link with federal registration and tax offices.

He said the provincial government after Covid-9, has tried to ease the burden of taxes on SMEs by eliminating dual taxes.

However, a higher tax target is expected to be achieved through bringing untaxed sectors and individuals in the tax net, he informed.

"We hope that relaxed taxation and lesser regulatory burden could attract investment," he added.

Representing State Bank of Pakistan (SBP), Akhtiar Ahmed, informed the participants that the SBP is encouraging commercial banks to lend to SMEs based on their cash flows and movable assets.

He suggested that the KP government may announce long term concessional rates for utilities and land to attract investors.

He said the SBP has created SME Development Forum in which private sector can submit their advice and online grievance redressal system will also be launched soon.

"We need more local research on the issues of SMEs such as mineral sector in newly merged districts could be promoted," Sohail Jan, while representing SMEDA, said and added further that some infrastructure gaps need to be addressed for the success of such initiatives.

SDPI Joint Executive Director Dr Vaqar Ahmed was of view that the government's capacity to support businesses may get diminish in case Covid-19 recurring in the future.

He said firms in the KP are finding it hard to grow owing to lack of affordable business spaces with decent infrastructure facilities; high costs of tax compliance; difficulties in participating in international trade and low access acceptable collateral and formal finance as well as rates of internet penetration; arbitrary imposition of labour, municipal, and environmental regulations; and weak access to public procurement opportunities.

He proposed, "SMEs need to be informed regarding opportunities in CPEC and Khyber Pakhtunkhwa Annual Development Plan," and added further that the KP government should expedite measures under Pakistan Regulatory Modernization Initiative (PRMI) which could lead to reduction in business costs.

In the wake of Covid-19 the focus should be to improve technology adoption capabilities of SMEs.