Business leaders seek support package for cottage industry and SMEs – Business and Finance

KARACHI: United Business Group (UBG) leaders Petron chief SM Tanveer, President Zubair Tufail, Secretary General (Sindh) Hanif Gohar, core committee members Momin Ali Malik and Malik Khuda Bakhsh have made an urgent appeal to the Pakistan government to introduce a comprehensive relief package including incentives for the struggling cottage industry and small and medium-sized enterprises (SMEs) across the country.

The ongoing economic crisis, combined with exorbitant utility bills and a severe reduction in gas and energy loads, has created enormous challenges for these sectors, leading to the closure of many businesses.

They said the cottage industry and SMEs play a key role in Pakistan’s economic prosperity, providing livelihoods to millions of people without burdening the government.

However, the current difficulties facing these sectors require immediate attention and support. UBG emphasizes that the closure of cottage industries and small and medium-sized enterprises will have serious consequences for the entire industrial sector that depends on them for by-products. Additionally, many of the industries that support these sectors have also faced production cuts or closures due to factors such as currency fluctuations and prolonged energy and gas shortages.

Rising interest rates to 22 percent, combined with banking service fees, have made loans unavailable to both small and medium-sized businesses, further exacerbating the economic crisis.

UBG calls for comprehensive measures to assess the seriousness of the current economic situation and urges the government to take swift action to ensure the survival of rural farms and SMEs. On the infrastructure front, UBG appeals to the federal and provincial governments to take advanced precautionary measures in view of the expected rains to prevent any untoward situations this year.

UBG believes that the current economic challenges facing the cottage industry and SME sector have been exacerbated by misplaced attention, lack of targeted measures and constraints imposed by IMF conditionality that disproportionately impact the poor masses. To alleviate the current situation, UBG recommends that the government consider allowing the cottage industry and SMEs to defer the payment of utility bills (gas, electricity and water) for a period of at least 6 months. Such actions will help these enterprises survive the current crisis. Additionally, UBG appeals to the government to provide interest-free soft loans to cottages and SMEs through SME banks, based on recommendations from relevant industry bodies. This financial assistance will help these sectors stabilize their operations and support economic growth.

UBG acknowledges that the challenges facing the cottage and SME sectors require immediate attention and urges the government to take proactive steps to ensure the sustainability and growth of these key sectors of the Pakistani economy.

UBG, a leading business community organization, reaffirms its commitment to representing the interests of the business community in Pakistan with a strong focus on promoting economic growth and sustainable development. UBG actively seeks to address the challenges facing various sectors and advocates policies that foster a business-friendly environment.