SMEs are playing critical role in the economic development and poverty reduction in Pakistan and government should offer good incentives for encouraging SMEs to grow smoothly which would enable such businesses to achieve better results and contribute more effectively in strengthening the economy, said Muzzamil Hussain Sabri, President, Islamabad Chamber of Commerce and Industry. 

 

He said 90 percent of business establishments in Pakistan are SMEs that not only employee major segment of workforce but also contribute a great deal to the GDP of the country. However, these business entities were facing many problems and government should make supportive policies for them to help them in minimizing wastages, reducing risks and lowering capital costs. He said there should be an incentive based system by the government for encouraging good business practices in SMEs. 

 

Muzzamil Sabri said with higher level of trade deficit in Pakistan, the role of SMEs for exports becomes critical and it is very important for the government to create conducive environment for SMEs in order to play effective role in supply chain and exports. 

 

He said SMEs were running successfully in developed countries only because of implementation of good governance and government should create enabling environment for sustaining SMEs growth. He said family owned companies that have adopted good governance structures always perform than those that have weak governance structures. 

 

He said SMEs growth is very much essential for economic revival of the country and a major tool for attracting foreign investment and urged that government must focus on SMEs development and help them in adopting latest international business practices by conducting series of awareness programs on key issues. 

 

He stressed upon the SMEs to strive for implementation of good business practices in order to improve performance individually and boost investors’ confidence that would help to improve the economy that has been facing multiple internal and external challenges.