Economy : SMEs ARE LOCKED & NEEDS FINANCIAL PACKAGE The impact of the corona virus both globally & in Pakistan is unpredictable & Prevailing lock down because of Coronavirus has led to a devastating impact on the economic activities and SMEs are especially hit hard. Most of the businesses fall in the category SMEs where they need to fire their burner every day to earn daily living & meet other financial needs of vendors and employees.
Micro & SMEs are usually housed in rented premises It may be small manufacturing units or a shop. Locked down of business, is getting beyond to a in definite period and causing a severe liquidity problem.
The Government is fully alive and aware and have given special incentives to Small Entrepreneurs but implementation of measures is also a great responsibility so that trickle down effect and funds must reach to SMEs.
SMEs need financial assistance right now to meet their different requirements such as paying rents of their premises, salaries to workers specialy when there are no sales and cash in hand is already spent,beside this, they need to honour their commitment both to the vendors & the suppliers and with this broken chain & lockdown matters & issues are bad to worst and out of control.
World Bank sees Pakistan’s economic growth
SMEs are also requesting for a special permission to start manufacturing in a limited manner with all the precautionary measures to avoid the spread of pandemic.
It is now a great responsibility of SMEDA & Punjab Small Industries Corporation to start consultation with SMEs sector wise and evaluate their needs and process of facilitation to bail out the Micro & Small. At this most hard hit economic times It is also very important to suggest & devise a crystal clear system to provide financial support to most guanine and needy SMEs. The process to identify SMEs who need support will be a great national responsibility and SMEDA – PSIC – CHAMBERS & TRADE ASSOCIATION must play their role to save the country from a permanent lockdown.
SBP & all other banks have a great responsibility to serve SMEs for their financial needs and assistance as per directions & decisions of Government to keep the SME wheel moving to meet the completions of export orders. I already have suggested in my previous article that experienced business leaders Federation president,SAARC chamber,Lahore chamber with other trade bodies representives may be included in a core committee headed by Prime Minster of Pakistan to meet fortnightly to address the needs and issues of SMEs,Trade & Industry
National Command & Operation Centre Islamabad
AMB;Rehmatullah Javed SME expert 22nd,April.2020